PGR 0.00% 5.2¢ the pas group limited

their strategy is simple accumulate as many shares permitted on...

  1. 231 Posts.
    their strategy is simple


    • accumulate as many shares permitted on market
    • then wait for a negative period contributing to a low share price
    • make a takeover offer at a low ball price
    • shaking out investors who are have lost confidence
    • this allows them to accumulate larger volumes on the cheap
    • resulting in a larger stake at low cost

    Depending on circumstances they may be some more offers however to gain the knock out blow I feel they will need to offer  premium. In which at that time would be
    on less share volume resulting in  acquiring the company at a bargain price overall.

    Those who know that the intrinsic value is way more than the offers presented  will hold waiting for the premium.

    The founder of Dodo conveniently holds a blocking stake and was not interested in first offer.  He has not publicly stated his intentions but it would surprise me if he accepted this offer. He is not a insto who is pressured by short term performance criteria. Being a smart business man he sees value buys a blocking stake and waits.

    From the report I found interesting  the view on Amazon arrival to AUS for PAS...

    • PAS retail brands are niche and market is for older age group
    • PAS has following for these brands
    • Established online presence
    • Customers tend to want to  try on product
    • Amazon will not have like for like product. Unlike electronics.
    • Effect from Amazon seen as minimal
    • Amazon range could provide wholesale  range new distribution channel
 
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Currently unlisted public company.

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