Post by
Valuewalk on Nov 27, 2017 8:26pm
Why I bought back in today
I agree CMED management is not great, and that's why they are in a hostile takeover situation with a more savvy competitor. People can get revenge for the past 10 years of mismanagement by selling if they want.
Im surprised some people are buying in to the argument that ACB's shares are overvalued the narrative being pushed by the SAME CMED management!
ACB traded 70 MILLION shares TODAY in Canada. That is pretty good price discovery.
At CMED's current price you get ACB at an 18% DISCOUNT.
ACB is up 30% since the merger was announced, CMED is only up 33%!
Even if the deal falls through (doubtful) CMED is trading in line with ACB and the sector as if the offer never happened. Yet on top of that we have the highly likely buyout at $24. Whats even more, with ACB's rise, there is a very small chance of getting less than $24 of ACB shares. BUT, the best part is, if the sector keeps rising, ACB will be compelled to SWEETEN the offer because it will no longer be a significant premium to where the MJ stocks have been trading as a group. Plus at the end of the day we become part of something bigger with excellent management.
Do you really think the institutions in CMED dont know what they are doing? Very good risk/reward in CMED at these prices, in my opinion.
Comment by
true377 on Nov 27, 2017 9:24pm
but how do you know what todays price will be worth in March and $3.60 on 1000 shares is $20260 $24000 = $3740 gain over 5 months = $748 a month when the sector is ripping