RE:RE:RE:RE:RE:Canaccord - now with a $2.75 target???I don't know what the odds are of AC buying CHR, but I wouldn't call it a "bet-the-company strategy"
At Q2, AC reported $2.9 billion of "unrestricted liquidity", and stated on conference call that their minimum target is $1.7 billion. So they have $1.2 billion of excess liquidity - compared to a market cap for CHR of about $540 million. Looks to me like they could pay a 100% premium quite comfortably!
Hypothetical example - they buy CHR for $7 a share, or $845 million. CHR generates a little over $100 million in free cash flow a year, so the cash return on investment for AC is 12%. And there is no operating risk, they are both already operating the same service! How many companies would make an acquisition for 12% annual return with zero operating risk! And if the purchase was all cash, AC would still have $2.16 billion in unrestricted liquidity, well about their stated minimum (they get $106 million of cash from CHR's balance sheet).
All completely hypothetical, and probably an unlikely event.