We are all adverse to LYC being taken over "Cheaply". However I believe if anyone attempts to take over LYC, it will be done for STRATEGIC RATIONALE not ECONOMIC RATIONAL. It may be a private company but it will be funded by very cheap government money. Japan has almost zero interest rates, the US are about 0.75%. and ECB are almost zero. Once they have made a decision to buy they would get it done uninhibited by economic rationale and fancy NPV models. This means a substantial premium would be paid to secure 100% control (and it would have to be 100%!). So what would they pay? Well my guess, and it is just a guess, is that they would be prepared to pay somewhere between A$2 - 3b. This translates into a price of A$0.28 - A$0.42. If we take a midpoint, the price would be A$0.35. Now this may look high by itself but comparing it to my LYC NPV calculation of A$0.53 puts it in a different perspective. Curiously A$0.35 is almost midway between the current Share Price of A$0.15 and the NPV of A$0.53 so it sort of feels about right. So this new corporate valuation technique of FOR ("feels about right") is the best I can do. Maybe somebody else has a better valuation methodology.
- Forums
- ASX - By Stock
- LYC - a takeover theory
We are all adverse to LYC being taken over "Cheaply". However I...
-
-
- There are more pages in this discussion • 14 more messages in this thread...
You’re viewing a single post only. To view the entire thread just sign in or Join Now (FREE)
Featured News
Add LYC (ASX) to my watchlist
|
|||||
Last
$6.10 |
Change
-0.160(2.56%) |
Mkt cap ! $5.701B |
Open | High | Low | Value | Volume |
$6.14 | $6.16 | $6.02 | $31.69M | 5.119M |
Buyers (Bids)
No. | Vol. | Price($) |
---|---|---|
1 | 23252 | $6.09 |
Sellers (Offers)
Price($) | Vol. | No. |
---|---|---|
$6.10 | 23221 | 2 |
View Market Depth
No. | Vol. | Price($) |
---|---|---|
1 | 23252 | 6.090 |
2 | 570 | 6.060 |
2 | 2048 | 6.050 |
5 | 5726 | 6.030 |
5 | 28527 | 6.020 |
Price($) | Vol. | No. |
---|---|---|
6.140 | 20000 | 2 |
6.150 | 1600 | 1 |
6.190 | 3000 | 1 |
6.200 | 2642 | 2 |
6.220 | 3000 | 1 |
Last trade - 16.10pm 19/07/2024 (20 minute delay) ? |
Featured News
LYC (ASX) Chart |