Browchay, I remember when ZYL got approached- I think the share...

Browchay, I remember when ZYL got approached- I think the share price was about 12c. I stopped bidding when the SP got to about 16.5c, because I thought it then looked toppy. Then it went up, up and away. I have read that when a company gets approached and makes an ANN, the SP moves up about 20% (this from one of the big brokers- Citi or UBS or someone- read in the AFR). So, this broker/bank said to sell on the 20% lift, and then to wait, until the froth falls off. ZYL's SP has almost doubled- even now. Sometimes I reckon that a suitor is not going to pay a premium on a share that just flies away, so the price has to melt a bit. This has also happened to HYO, which I owned- a notification of approach, a share price tat just kept climbing, and now a cooling off- that probably had to happen.

The above is just a guess. However, I reckon there is more likelihood of a bid when the SP cools, than when it is really heated. From what I've seen, the SP climbs around 20% (more in the case of ZYL), and then falls to have about 10% "froth". That is the "indecision" in the market time, where there is the "will it or won't it be sold" question. Sometimes it's better to know what the offer will be, than just speculating it up forever, because the market will drag it back down again.