RE: Whats going to be the buy signal for a deal?15 Mar 2025 11:41
Dave - (a) a leak will be the buy signal. Chance of a leak happening? Pretty close to zero. Whoever had that boozy lunch with the FT journalist in the first place will have had a serious slap of their wrist. It's unlikely to happen again. (b) No news will be a buy signal. Seriously. The closer it gets to 24 March with no updating RNS, the higher the probability that Sidara have not walked away. There is an obligation, following the RNS announcing the talks, to inform the market if Sidara have walked away/are not interested as we know there has been a market created as a result of that original RNS. The general principles of the Takeover Code are clear that a false market must not be created. So if Sidara have walked away and the market is not informed, then the market for shares has been distorted by incorrect information. (c) your own assessment is a buy signal. We've all got slightly different things we look at. Add it to your calculation. (d). A sustained higher price - for example the share price moving and not falling below 40p/41p - it could be because of sentiment (because others have done the maths on probability of a deal, so risk/reward on the bet) or because of a leak... . It's a sort of micro signal. It was good news in that sense that we closed around 40p on Friday. Watch the SP carefully this week. But again, don't be caught out if the SP dips! It's really complicated. Some people will lose their nerve/be happy to cash in before a deal is announced. I've seen it often, before deals are announced, or before particularly good results. The dip is NOT indicative that a deal won't happen - necessarily. (e) If I end up selling my shares on Thursday, then a deal is almost certainly going to be announced on a Friday. Lol! That one's a joke! Ha ha ha! But sometimes has been shown to be true. It's hard to hold your nerve in these situations. It's so much easier to cash in and put your money in a building society rather than lose at least half of it overnight. But what reassures me here is that WG is still a good company, so yes, SP will fall to around 20 I'm reckoning on No Deal, but it will climb up again, albeit more slowly..... . It'll be annoying as it's opportunity cost rather than actual expense of holding the shares.