Conviction scale? For me, the conviction is moderate to low. I've now started buying for the LT so my conviction is better than at least 50%.
The signs were there for VOC and I managed to get some at the very bottom (literally a few cents off the bottom) before two PE firms made competing bids. I sold most at $3.20 when things felt rocky with the bids (they were ultimately withdrawn) and held onto a few. They've now shaken off those woes and are back above $3.20. SDA is very different but I sense there's still a lot of interest in the telco sector for PE.
Regarding the debt, it's a lot of debt but the EBITDA will increase proportionally along with the debt (assuming the synergies eventuate and revenue growth bounces back). I also take a very simplistic view that the debt wouldn't be underwritten unless the Board and the bankers were quite comfortable with the numbers. Could be a little idealistic but no one wants to underwrite a doomed venture (unless they want the carcass).
- Forums
- ASX - By Stock
- SDA
- UBS and Shorting
UBS and Shorting, page-6
-
-
- There are more pages in this discussion • 4 more messages in this thread...
You’re viewing a single post only. To view the entire thread just sign in or Join Now (FREE)