All good, ville. When OZL did the raid, or took a piece of SFR, it was not the creature it is now. Who knew then that it would be so successful? It coud have been a dud.
HT1, you said at $7.03 you would do an IV of SFR @ 7.02pm. At 7.36pm, you came up with all those figures. You're clever. :)
Does anyone know if a purely scrip offer works out for free with a company, aside of some dilution? Costs nothing to create sares out of thin air, yes? It is surely the way to go for some of these companies, if we get a creadit squeeze that is likely to occur if the Ords/world markets keep diving, and banks get twitchy about lending. Dilution wouldn't be such a concern as OZL has been buying back and cancelling shares.
As a matter of interest on bubacks, there's an article in today's AFR Street Talk that says buybacks "only" add 1cps to earnings, and that companies could be overwhelmed in the buybacks if investors dump, that the companies might also turn out to be astute investors if the economy recovers (for members, browse at a newsagent, or take out a free trial):
Re takeovers, if things keep going as they are, shareholders will be grateful for even opportunistic offers as a way to get money back (imo). Sure, people will huff and puff, create HC shareholder fightback groups, etc, but at the end of the day, everyone wants capital protection and T/O's provide that. I noticed aftert the last correction (did it ever end?) there was a flurry of takeovers. OZL, as a tidy beast, with cash, the buyback, and good assets, could also go on the block at some point.
OZL Price at posting:
$9.43 Sentiment: None Disclosure: Not Held
