merger deal that's blown up in some traders' faces is the EMITCH...

merger deal that's blown up in some traders' faces is the EMITCH (EMI) purchase of Mitchell Partners for $100 million.

The shares soared from $1.38 ahead of the announcement to as high as $1.75 on the day of the announcement.

On Wednesday the shares plumbed $1.14 and were up 0.5c and unloved at $1.255 yesterday.

We're not surprised.

Emitch predicted an "almost doubling" in earnings per share after the acquisition.

As we pointed out, that was not much.

Emitch had an EPS of less than 1.4c last year which would be, say, 2.7c for this year if it were "almost" doubled.

Even at $1.25 forward p/e is 43 times ... at $1.75 it was ridiculous


$1.10 to $1.15 is my guess for a get in