TSX:STB.DB.A - Post Discussion
Post by
slimjim11 on Feb 28, 2018 6:08am
Takeover Candidate. January 21, 2016 post.
Takeover candidate
With steady cash flow, high dividends earned and paid in US dollars, stable municipally-backed diverse customers in a recession resistant business with a proven track record of growth, STB is an attractive takeover candidate for any pension fund or yield-hungry corporate acquirer. With market cost of long term debt at record lows, and with STB yielding 13%+, the logic of acquiring STB should be being considered by many potential suitors. I would not be surprised to see a competitive bid emerge with a price in the C$6 to C$7 range, which would still offer an attractive yield pick up for the acquiror. It will be interesting to see how shareholders reply.
Read more at https://www.stockhouse.com/companies/bullboard/t.stb/student-transportation-inc?postid=24481857#0BSbXQUQTtsCbBiD.99
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