takeover, page-44

Don't worry guys and have a good weekend. If this forms a small part of your portfolio with the capacity to add more, the risk is much more favourable to say a loss-making low cash-generating tech stock.

The risk is much less than it was when it was $6 or $8.

There is a reason why this was an acquisition target (and continues to be an acquisition target). The company must be / have been attractive for things like cash generation and high profits and distributions and ability to grow organically in a world of transition to electric cars (a potential catalyst to increase leasing volumes).

It was attractive at a price of $9.30 to private equity. That means the potential buyer was expecting to extract much more long term value than that for it be a profitable investment to them. Meaning the company was worth much more than $9.30 just over ago. They've got the smart guys doing the calcs.

Even if the offer price under a takeover is $7-8, that's a great deal higher than today.

Someone mentioned that Tim Looi is trying to prop up the company / share price through higher dividends - we'll, I welcome that because income is important when markets are volatile and economies are struggling. Given the guidance is downgraded, I suspect Tim might yet pay higher than expected div to keep us happy come Feb 23. He'll pull some tactics that is mutually beneficial.

I'm willing to add more if it decreases again materially.