The Substantial Shareholder Notice lodged in August by the T Rowe Price organisation showed that they'd not been prepared to buy shares at more than 21.5c as they quite rapidly built up a holding this year. Since then though, a party or parties has certainly been prepared to do so.
Daily Volumes seem to have been above average of late and a fair amount of stock in RED was crossed at 26-26.5c last week (with even a handful of trades being done at 27c). If some shareholders are prepared to accept lower than these prices, it'd make sense for a buyer to hold back a little and see just how much stock they can soak up at lower prices.
This activity may simply be the result of a patient accumulator taking a view that RED's recent problems are behind it and that the time is ripe to build a decent holding in what appears to be an under-valued stock with quite bright prospects.
Alternatively, it could also be a potential predator building a base from which to launch a bid.
I noted a comment within a piece about RED in Friday's The Australian that "Market sources believe Red 5's shareholders would be supportive of a buyout of the company ... ". Possibly kite-flying or possibly a relatively informed insight.
One aspect though is that if the recent buying is leading to an offer being made, those doing the buying are outlaying a bit of cash by buying on market. As I said, it may simply be the acquisition of a stake upon which to launch a bid. But it could also indicate that if there's to be a bid, it could quite possibly be a cash bid.
Given the rumours about a particular interested party, I'd think a cash bid would have more appeal to RED shareholders than one simply offering them over-priced paper in the bidding entity.
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Last
41.0¢ |
Change
-0.010(2.38%) |
Mkt cap ! $2.789B |
Open | High | Low | Value | Volume |
42.0¢ | 42.0¢ | 40.5¢ | $11.39M | 27.67M |
Buyers (Bids)
No. | Vol. | Price($) |
---|---|---|
2 | 88526 | 41.0¢ |
Sellers (Offers)
Price($) | Vol. | No. |
---|---|---|
41.5¢ | 1001030 | 9 |
View Market Depth
No. | Vol. | Price($) |
---|---|---|
1 | 73769 | 0.410 |
14 | 424035 | 0.405 |
33 | 903599 | 0.400 |
13 | 429927 | 0.395 |
12 | 797128 | 0.390 |
Price($) | Vol. | No. |
---|---|---|
0.415 | 52886 | 2 |
0.420 | 967524 | 18 |
0.425 | 1753996 | 13 |
0.430 | 710829 | 9 |
0.435 | 1172588 | 9 |
Last trade - 16.10pm 24/06/2024 (20 minute delay) ? |
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RED (ASX) Chart |