Post by
blackdog on Sep 25, 2020 3:28pm
Crickets chirping
Up to 22 Sep I have the opinions of nine banks or investment houses who offered analysis on BNE. All are guarded and most list it as a “sell”, but all have price forecasts suggesting that they see it survive and recovering, a few more quickly than most. Only one has so far opined on the virtues of Obsidian's proposal, which it sees as a potentially good idea; subject to getting a better understanding of how the integration would be achieved.
There is now no coverage of OBE that I can find. The last one out was BMO, with final target price for Obsidian’s stock of one cent.
OBE first mooted its desire for a business combination with BNE on 31 Aug; this was followed by a few friendly stories on the idea in the press, and then by OBE’s commencing a hostile bid on 21 Sep.
The public reaction to all of this has been next to nothing, save the few comments made here; dominated by those who present as OBE supporters mostly posting on the Bonterra board to trash talk that company. The market is telling us that shareholders are sitting on their positions.
The usual sniping suspects aside, the OBE board is mute; not that the discussion here is all that much more informative. Can anyone show me feedback from Obsidian shareholders on what they see as the future of their company, and their enthusiasm for management’s initiative here? (Hendrick3's opinions and dissent acknowledged). Or even some indepentent positive views on the company's future, outside of managment's?
Research by financial advisors is an expense. They do it to make money from trades and to keep good customers happy. Not to read too much into what we find here, this suggests to me that there are a lot of good customers holding Bonterra across a broad range of accounts with different houses; who have an interest in the company that the financial intuitions recognize, and are not in a rush to exit long held positions.
And, conversely, that this is not the case for Obsidian...