Post by
blueboy on Feb 05, 2019 10:39am
EMC trading at a ridiculous discount right now...
to the ALEF takeover offer.
With the ALEF offer being 0.8377 of an ALEF share for every EMC share, and with ALEF trading at $2.78 right now, that values each EMC share at $2.33.
EMC is only trading at $1.75, right now, that means that EMC must climb 0.58 - or 33.1%! - to reach the level of ALEF's offer.
The ALEF share price has only strengthened since they made the offer, and the Board of EMC is already on board with this offer, so there shouldn't be much opposition to it at all.
By comparison, when the IAN / MPX offer came out, MPX was initially trading at an 8 - 10% discount, as an 'uncertainty gap' until the takeover was voted on and went through. MPX is now trading at (or even slightly above) the IAN takeover level.
I expect this takeover to go through, and I have absolutely no idea why the discount between the actual EMC share price and the offer price is so huge. The gap between the actual share price and the ALEF offer for EMC should be closer to (or below) 10%, in my opinion, so I look for that gap to close significantly from here.
Looks to me that there is good money to be made here, as long as the share price of ALEF remains strong.
Thoughts?
Derek
Comment by
blueboy on Feb 05, 2019 10:50am
ALEF now at 2.89 and EMC now at 1.77, so EMC is now trading at a discount of 36.8% to the ALEF offer... BB
Comment by
highrider2 on Feb 05, 2019 11:40am
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