A Similar ViewpointCTS just exercised an option to increase their amount of funding from $500M to $600M. Does this indicate they might not have reached an agreement re a takeover? Not necesarily. Regardless of what's happening in the background business needs to continue. Keep in mind CTS had been approached, and may not be a willing seller.
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Is the sell off in CTS today rational because they increased their credit facility by 100M, or is it just retail investors panicking because they think no deal will come? What's the stock worth with no deal; most analysts say 8-9.
BUY
Converge Technology Solutions(CTS-T)
10/02/2023
Trevor Rose’s Insights - Trevor’s most-liked answers from 5i Research.
Recent selloff is an overreaction; most companies are happy to have higher credit lines regardless of what else is going on.
They provide flexibility of course.
We think $8.50 to $9.50 would be an acceptable price for buyer and seller.
Technology
Stockchase Insights
$5.380