With the volume of shares traded in recent weeks and a rival mortgage lender announcing it is now a substantial shareholder, it looks as though a takeover is getting closer. Based on a 30% takeover premium, I am looking for a price of about $3.50. In the meantime The Rock has announced first half guidance of approx. $2.2m net profit which should produce an intrim dividend of 6.5 to 7.0c. The good old Rock is now neither a growth or yield stock so a takeover seems our best hope.
ROK Price at posting:
$2.61 Sentiment: Hold Disclosure: Held
