Hello Desmond: What do you see in Lorenzo?
Based on historical data, Lorenzo has done poorly, losing money in 4 out of 5 years (2011-2015). Cash has come down sharply, which was why the company needed another round of placement recently.
Revenue also declined in the past 5 years. Will there be a turnaround with new management and new subst. shareholder?
HTL is one EGM away from privatisation at $1.00. There is still lots of meat left on the shares because at 92.5 cents, there is 7.5 cents left.
If you annualise it, you get about 22% return (assumes deal is completed in Oct 2016). Might be higher if completion is earlier, of course.
LORENZO moving up today. Perhaps reflecting the good fortune of its peer HTL. Not sure, just guessing.
93 cents is a good entry price still, considering that the way has been paved for a $1.00 offer. It's simple and straight forward now.
7 cents profit for holding around 3-4 months. Yield is about 20% or more.
Look out for HTL circular to shareholders to vote at meeting which should take place in 1 mth. There are 2 approvals to get but should be OK -- from SGX in principle approval & High Court approval .
This one is in a similar situation as Lantrovision a few months ago. Delisting offer at 3.25 when market still trade at 3.10 or thereabout. In the end when the meeting is called, more than 99% present at the meeting voted for it. I just cannot understand why there are still seller at 93 cents now when the Company has just announced the appointment of the IFA yesterday. The completion date should be within the next two months and the return is 7.5%.
Brexit is not a threat to this deal at all. It should proceed to completion in my view but I am not sure how many weeks/months to go. SWN, Zane, how did you estimate 2 months?
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