RE:Close below 40$ today ?I was thinking about this last night. I own some LB and I bought when Ross Healy recommended it on BNN, in the low $30s, so granted I am still in the green here but I have not sold. I am considering buying more.
I don't think this is just 'pure specualtion'. The scarcity of the asset makes it desirable. There will be bidders. Now the real question is, what is it worth? I think most of us agree it is worth more than $40/share? Now can we agree it is worth at least $50/share? I think that is still being very conservative.
Anyway you cut the pie, this stock is worth a nice return at current levels assuming LB decides to sell.
A non-sale is the only major risk here. Are they in fact ready to sell? That is where Takacsy comes in. He doesn't buy these types of stocks for short term gains, very often. I think he has some idea that LB is going up for sale.
Just a hunch but I guess that is why they call it risk and reward. A fine line.