Sangoma Technologies Corp T.STC

Markets

[Captain71]

Any theories on why STC is struggling here. Markets have been in the green for days, even Nasdaq has bounced back nicely.

Was this stock just a little overvalued in investor’s minds?

Then again have seen lots of times where large caps take a run up then mid/small caps follow some time later.

Just curious what other shareholders are thinking?

GLTA

[jermoguy]

This is just my opinon and I hardly have any wisdom to share, but my gut tells me that perhaps there is some apprehension at the Star2star acquisition based on how large of a deal it was.  Typically with small caps that I have owned, acquisitions have generally been regarded favourably, and the stock price will rise and at the very least, stay at the new levels.  I am not sure what to

[GARP17]

Fair points. I believe it’s due to the acquisition not being completed and subject to a vote. If this ran to $6 and the shareholders voted no then that’s a problem.

[jermoguy]

True.  I am wondering though, if the shareprice ran to $6.00, would that not be indicative of shareholder assent on the deal and be a barometer how they will vote?  I am just thinking out loud here - maybe my understanding is not how it works.

[MarkG1963]

I don't think we have anything to worry about but I am not sure why it came back down to the level before they bought them. Here is a link to Market Call 2 weeks ago when Robert McWhiter talked about them at the 8:20 mark. He says a 12 month target would be between $8 and $12

[MarkG1963]

here is the link   https://www.bnnbloomberg.ca/market-call/full-episode-market-call-for-friday-february-26-2021~2142397

[Torontojay]

Here is my 2 cents. When a company acquires another company that is equal in size there are some risks. First and foremost a company needs to take on debt and share dilution in most cases. If they purchased the company below its intrinsic value then we will see a nice share price increase moving forward. On the other hand, if they overpaid for the company then the share price retreats. Also, with

[Captain71]

Thank you all for the comments. Guess we all have been wondering about this a bit. Just to be clear I am not at all concerned about the future share price, just wondering why it is struggling a bit now in the midst of a market rally. I have been following this company for quite some time and Mr. Wignall makes smart decisions. Over time I honestly expect the synergies from this deal to surpass