Re Overhang - it's not MQG you need to worry about - it's all...

Re Overhang - it's not MQG you need to worry about - it's all the shareholders who bought between the bid announcement and yesterday. Those guys could not have bought in for fundamental growth, but were arbitraging the M&A outcome. They lost their bets (that the deal would close) and now could well liquidate.

Re 30% loss - well $1.90 to $2.10 would be about where RDF would have been if it just grew with the market. So arguably only just oversold.

Re no financial problems: Negative cashflow is a financial problem that RDF needs to solve. Its CapEx ($21.7m) is roughly 50% of EBITDA ($42.0m) so it relies on capital raising activities to support its growth. Since 2006 the only time its CapEx been less than operating cashflows was 2010.