melua returns with a smile

A prosperous 2008 to all. I have been kept informed of what's been happening on HC whilst I was in Europe. Well, good old ZFX came to the rescue of the bulls and ruined my plans of buying in the 50's. Pity because everything unfolded perfectly (as I said) with the DOW retreating and the ASX following suit. But, facts are facts and AGM is now $1.04 following ZFX's opportunistic bid.
I bought a very sizeable stake in AGM at $1.00 and $1.01 just after the bid was announced and I continue to top up at these prices prevailing now. Two reasons:
1. Great safe haven whilst the market is getting hammered.
2. My firm belief is that ZFX will up the bid to around $1.20 so it's a sure bet to buy at current levels.

Make no mistake. ZFX will not walk away. They are getting a LONG TERM bargain (I always said AGM was worth at least $1.50 LONG TERM). The problem for AGM holders is unless there is another bidder, ZFX will acquire AGM at a bid of around $1.20. Those of you who want to hold will unfortunately be forced to sell under the compulsory acquisition rules of the ASX once ZFX acquire enough stock.
I would be stoked with $1.20 because it will mean a quick 20% gain on a very big short term play.
Don't delude yourselves that you will be able to hold on forever. You just watch the AGM shareholders bail out at $1.20 when it becomes clear that without ZFX, it's going back to 70/75c. Who will honestly refuse ZFX's increased offer when it is offered under that scenario? Not the smart end of town I can assure you. Make no mistake, ZFX is going to get AGM and they will be getting them cheap and there is nothing anyone can do about it. Refuse to sell? Sure, but once ZFX get their 90%, you will have no choice. Under the ASX rules on compulsory acquisition following takeover, if you refuse to sign the forms and sell, they can cancel your shares.
AGM is a screaming BUY at $1.04 with a nearly guaranteed exit at around $1.20. The bear market about to start has ensured ZFX are on a winner here. My advice to youAGM bulls is to keep buying the stock. There isn't a surer bet in the market right now. 20% profit in a month or two is sweet and juicy.