One again, we had the same thing with Genusplus. On the 30th of Sept, they announced the acquisition of Commtel which has an estimated positive impact of around 10 % on their EPS. Initially, the stock did not react with an increase of only 0.8 % on the 30th of September. The stock has now rebounded by around 10 % since this acquisition (not explained by the ASX, which has been more or less flat since this acquisition).
We had the opportunity to buy this stock cheap, just after the acquisition. Like we have seen it with other small caps which did an acquisition with a large earning enhancing impact.
So, I am quite tempted to buy the next small caps which announce acquisitions with increase of EPS per share. Rather low risk strategy (main risks : market correction or acquisitions which is abandoned later on).
