Why the Panic Sell Button...Isn't this a Buy Opportunity?I don't see why investors are hitting the panic sell button at these prices. I still remain very confident the deal will get done but believe time is needed to close the transaction. The CEO already owns a large percentage of the company. As well Agrium has a significant investment in the company. I would expect managment on Agrium to have completed proper due diligence in reviewing the investment in Hanfeng. I haven't heard any news about the CEO or Agrium selling their stakes in the company so as long as this is the case I remain confident at some point or another the deal will go through.
Also in the recent press release from Hanfeng the article stated positive development regarding the financing and now it looks like final pieces are being set in motion. In the words of the press release: "In all other respects, the basic terms of the arrangement would remain unchanged."
I feel safe buying and holding shares at these levels ($1.55)...knowing that the upside potential is 45% which I would assume would be realized in under 1 year if everything follows through. On the flip side of things if the proposed transaction fails what is not to like owning a fertilizer company which is owned in large portions by the CEO and Agrium at these levels?