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Poor stock market conditions tend to make it harder to IPO, increasing the attractions of the RTO route, and increasing the bargaining power of shells like TMOR.
And meanwhile, the valuations of RTO targets for shells tend to be depressed.
So ironically, the s.p.s of shells like TMOR can become depressed at the same time as they are in effect becoming more valuable: more capable of cutting a cracking RTO deal on great terms - i.e. a better shell valuation and lower target valuation, and great quality targets.
Which makes a shell like TMOR - with both great cash underpinning and great deal prospects - a great place to 'park funds' at the moment.
Many investors may wish to reduce their exposure to shares in companies with trading businesses, but holding cash for months doesn't give any real direct upside - certainly in the short term.
TMOR though has both underpinning, and great potential upside - it could easily multibag from this level on a good deal.
And you don't have to worry about funds being tied up here for a while if you won't be using them anyway.
A shell with a not dissimilar ticker to TMOR released its final results today, and here are a couple of key points from Chairman's statement:-
26th Jul 2022 7:00 am RNS Final Results
"Results for the period 25 March 2021 to 31 March 2022
... The recent resets of pricing in technology stocks in our view works to the company's advantage. ...
... we look forward to updating the market on our progress. ..."
https://www.lse.co.uk/rns/TMTA/final-results-587ma8gkxqc1q20.html
That first point supports the view that I set out at the start of second post on 28th. May here:-
Hedgehog100 Posts: 2,135 Price: 0.975 Strong Buy
A Good Time for Shells & RTOs
"Poor stock market conditions tend to make it harder to IPO, increasing the attractions of the RTO route, and increasing the bargaining power of shells like TMOR.
And meanwhile, the valuations of RTO targets for shells tend to be depressed.
So ironically, the s.p.s of shells like TMOR can become depressed at the same time as they are in effect becoming more valuable: more capable of cutting a cracking RTO deal on great terms - i.e. a better shell valuation and lower target valuation, and great quality targets. ..."
https://www.lse.co.uk/ShareChat.asp?ShareTicker=TMOR&share=More-Acqu&page=3
As regards deal progress, TMTA is keeping its cards close to its chest, as is to be expected re such negotiations.
But 'reading between the lines', positive progress seems to have been made, and the company may well issue some good news in the near future.
The bodes well for TMOR also having made positive deal progress.