There is another theory and that is "theory of acquisition". If there is/are potential acquirer/s, they will try to take significant position before putting a takeover bid. I posted below earlier in QA thread, copy pasted it again as its a theory only thread
From slide 22 of recent presentation.
Industry M&A At High Multiples: Up to 10x Revenues
Top tier industry players are acquirers
Several repeat buyers
Companies acquirable once field-proven
Acquisition values up to 10x revenue
Early stage water tech companies acquired:
2011 - Inge bought by BASF for A$145M with revenues of A$15M
2014 - NanoH2O bought by LG Chem for A$274M with under A$14M of revenues"
So based on EMC's revenue of $15 M and SABRE is Field-proven, any to be buyer have to pay over A$274M for the company. That is over $1.5 per share.
