RE:Petrogas DealHey MS
I finished my dumping of ALA on Oct 8th so all out. In total, we sold 4200 shares at an average price of $17.75. Besides some extra early inheritance to the kids, we put a good chunk of it into CPX at $29.03. So far, as expected, it's looking like a good move: ALA -7.27%, CPX +5.55%. I'm actually expecting the gap to widen and for CPX to do even better.
Anyway, it was certainly a big good riddance to the most disappointing stock my wife & I have ever owned.
Ciao
Sarge
marketsense wrote: Looks like the market is using this deal as an excuse to dump more shares after the morning
spike. There must be a lot of disaffected holders like Sarge and Bossu still hanging around
waiting to exit with every chance they get. Today was an other opportunity to dump
this name and many did.
Time will tell whether this is accretive as management suggests. If today is any example, I'm
not holding my breath. It fell pretty flat and so the disonnect between managment and the
market remains unchanged.
They took on more debt to consolidate Petrogas and now they neeed to prove whether the hard
numbers are in fact accretive. If they are there is no reason other than short term lack of
conviction why ALA should not be valued more than before the consolidation. Again its wait
and see the proof before the market will give any credit for this deal.