I probably wouldn't say WAM is undervalued... It is trading its overvalued scrip for control of AYS's franking credits. The premium could dissappear in a heartbeat if a bigger player such as Langfirst started selling their WAM shares once they got them. They want their cash and as a foreign entity its unlikely the franking credits will be any use to them hence why they are willing to take the WAM offer. I feel they are going to sell hard and sell fast... This only makes sense for current WAM shareholders, sell WAM and buy AYS for a lower entry. For arb funds, this is probably a no go.
AYS Price at posting:
77.0¢ Sentiment: Hold Disclosure: Held
