takeover offer at 70c..tell em their dreaming!

  1. 1,263 Posts.
    The independant assessement of the takeover offer for shares at 70 cents was " not fair, but reasonable". Anyone know what that means exactly.

    I agree with the directors of the company that 70 cents per share has no chance of gettign acceptance.
    Firstly as the stock was trading ABOVE 70 cents a share BEFORE the take-over offer was issued.

    Secondly,looking into projected profit results I get a PE of around 7-8 for this coming financial year at 80 cents per share.

    Lastly, the potential upside of their new development. Being able to transport pipes as flat sheets and round and seal the pipes in the trench is obviously a huge benefit in terms of transport cost and speed of laying pipes. It could turn the staid world of pipe laying on its head. Pipe layers everywhere are talking about it in hushed tones and revolution is in the air.

    RBL seems to have no downside really. Making good money, growing fast, new technology, and one company already making a takeover offer. if it doesnt get to at least $1.00 in the next few months il be very surprised.
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