If cotton on are serious about a takeover then the time is...

If cotton on are serious about a takeover then the time is coming where he will have to show his hand.
If the US market holds at these levels we could have a mother of all rallies in the next few months and the asx will be no different. Our market could even outperform due to the overlay of the Chinese bargain shopping our resources.

Many small caps have been beaten to death by the market and this has been exaggerated by lack of liquidity. But the lack of liquidity could work against him as the stock works its way out of its 4 month base. I am looking for a run up to 32 cents and then a low volume pullback, to complete the cup/handle formation. It is then blue sky once resistance is cleared around the 32 c region and a clear run back up to 67 cents is likely
A takeover play would be superimposed over this scenario. Once shareholders get a sniff of recovery back to 67'ish his chances of pulling off this opportunistic raid is severely reduced
A jump of 10 cents in sfh would eat into the premium that cotton on would have liked to have offered initially to shareholders. Still a great deal for him and in this market something that shareholders would consider.
If on the other hand the sp jumped 10 c prior to a takeover announcement he would have to add another 10 c (say) with the knowledge that a further 5- 10 c would get acceptance.

With that in mind the spike this morning will have focused their attention on the risks to the upside of the share price and perhaps their complacency may be jolted♦
One strategy might be to put a lid on the speculation by placing a big sell order in the market to scare off speculators who have been pushing the price up recently.

Of course the US market may fail to bounce and then he is right to be complacent, because then he can just continue to accumulate at these ridiculous prices