Peregrine Diamonds Ltd. PGDIF

Another takeover today

[ekim]

https://www.marketwired.com/press-release/-1992806.htm

52 week low of GRO was 3.5 cents.
Price post announcement - 18.5 cents.

Equating to PGD and 13.5 cents, you get a 71 cent takeover price.

That is going to be one measure of these takeovers.
How much undervalued were these companies when they reached there 52 week low.
In this case, the market was undervaluing the company 5x.

LONG...PGD

EKIM

[mill44]

It was 3.5c for one day, Next day it closed 100% up. If you look at the volume for the last 6 months, you will see a big chunk of trading at 19c. Based on that, there was no premium in the takeover.

[ekim]

If you are going to play that game, you have to go back into history to see what the share price ratios of the 2 companies were and then come to a conclusion. This was a stock for stock deal....not a cash deal. EKIM

[mill44]

Yes, it was a stock for stock deal. The historical prices of the company must have played a role in setting the ratio, for sure. I just had a quick glance at the price history and saw that in the last 6 months the volume was mostly at 19c. If you look at PGD you will see that for the same period, the biggest volume was at 14-15c. We traded under 16c for over a month and a half, Gro traded under 7c