golden
Junior Member
Posts: 399
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Post by golden on Apr 3, 2011 16:06:00 GMT 10
That's what happens to Queenslanders who forget the market really does open @ 10:00am  Take it easy out there guys  g Attachments:
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worm
New Member
Posts: 93
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Post by worm on Apr 4, 2011 13:33:14 GMT 10
EQN takeover, not a bad move today!
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worm
New Member
Posts: 93
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Post by worm on Apr 4, 2011 13:39:12 GMT 10
Can someone explain to me about this EQN takeover. I dont quite understand. The take over offer is $7 but the share price jumped to $7.30
Would that not mean everyone who has bought over the $7 will lose out?
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Post by countrylad on Apr 4, 2011 13:51:36 GMT 10
You will often see the shares of a takeover target trade higher than the offer price because the punters assume that now the company is in play, there will be a higher offer from another party (and higher than the punters have paid).
If they trade lower then the market is assuming that it is unlikely to happen.
The offer for EQN is for C$7 which at current rate is about A$6.98
Cheers
CL
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worm
New Member
Posts: 93
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Post by worm on Apr 4, 2011 14:34:52 GMT 10
Ok, thanks CL.
Will watch keenly to see how this one plays out.
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Post by cyclops on Apr 5, 2011 14:36:06 GMT 10
RBA leave cash rate unchanged at 4.75% for fifth month in a row.
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worm
New Member
Posts: 93
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Post by worm on Apr 5, 2011 15:06:03 GMT 10
EQN:
"In the absence of a rival bid in the next three weeks, Michelmore said the Equinox share price is likely to fall back towards MMR's C$7-a-share cash offer for the company. "
I know this might be a stupid question but what is the likely hood that another bid will emerge? Im tempted to sell out now. Haven't been in a stock with this type of scenario before. Seems odd that the price is far above the offer price..... alot of gamblers or someone knows more than I do? Hmmmmm
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Post by countrylad on Apr 5, 2011 19:47:29 GMT 10
No such thing as a stupid question Lee.
This one is not as straight forward as most in that the takeover bid by MRL is conditional upon EQN abandoning the proposed takover of LUN which EQN is not about to do, and in fact has extended the offer period.
Another consideration is what is the actual premium of the offer? The EQN price before announcing the bid for LUN was $6.22. On announcing the bid, the price has steadily dropped and then recovered a bit to $5.71 before the MRL bid. Consequently, it could be said that the premium should be calculated from prior to the LUN bid (MRL condition to abandon) and this is only 18%.
Shareholders have 3 options.
1. Sell now
2. Approve the LUN takeover assuming that the MRL bid will be withdrawn and there hopefully will be a bump in the share price.
3. Hold, assuming that there will be another bidder or that MRL will increase the price or it will waive the LUN condition.
Cheers
CL
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r2d2
New Member
Posts: 156
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Post by r2d2 on Apr 6, 2011 14:00:47 GMT 10
WFM an interesting little stock that has caught my eye recently.
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Post by eddievanhalen on Apr 6, 2011 14:11:26 GMT 10
Interesting that the Chinese market has done the opposite to what many expected and jumped 1% today following the interest rate rise.
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worm
New Member
Posts: 93
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Post by worm on Apr 6, 2011 15:25:19 GMT 10
Thanks for helping me understand CL. A new one for me I have put in a stop at $7.38. Might move it up a tad tonight depending on how it finishes. |
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Post by fastoy on Apr 8, 2011 14:51:42 GMT 10
Although I'm always skeptical of biotechs, which tend to have wonderful concepts but occasionally run out of money, CZD seems to be in a persistent vertical uptrend.
Its action is very positive, in that each leap forward seems to attrack buyers, not sellers. My primary 'alert' is stocks making new highs, I think I've mentioned that before, and it still works for me.
I have my scan set for 'bid above year's high', in active stocks. Its surprising what that throws up.
I have a few CZD.
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Post by countrylad on Apr 8, 2011 15:40:23 GMT 10
Although I'm always skeptical of biotechs, which tend to have wonderful concepts but occasionally run out of money, CZD seems to be in a persistent vertical uptrend........... .........I have my scan set for 'bid above year's high', in active stocks. Its surprising what that throws up. CZD announcements of the study then the director buying was a signal for me. Biotechs and silver at the moment. Some transformations are working. CZD is the old Metabolic and the old Macmin (AYN) is going nicely into new highs territory. Cheers CL |
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worm
New Member
Posts: 93
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Post by worm on Apr 8, 2011 16:37:12 GMT 10
EQN opposed the takeover bid
"Equinox Chief Executive Craig Williams said Minmetals's C$7-a-share offer "is clearly opportunistic and seeks to frustrate Equinox's offer for Lundin Mining." He said the offer was just a 9% premium over Equinox's average share price over the last 20 trading days--"a fraction of premiums paid in recent acquisitions of base metal mining companies."
I would imagine that its a good sign the share price didn't drop significantly?
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Post by fastoy on Apr 9, 2011 16:32:47 GMT 10
Biotechs and silver at the moment
Same here! Its CZD and CCU for me, CCU I have been in since low teens, and with silver hitting almost $41 last night, its not over yet.
CZD has almost doubled in a week, and looks very strong. Metal prices were up (LME) 93 points, and dollar nearing 106, so the game is still on well and truly. Maybe we will see a blow off temporary top soon?
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