BT63 wrote:dealtn wrote:Bouleversee wrote: I am angry with the Board for buckling so quickly and not doing enough to confound the day traders and algorithms which manipulate the s.p. to such a low level. If the company were not worth more, nobody would want to take thrm over.
The price hasn't been at these levels for 2 1/2 years. If you think "day traders and algorithms" are able to "manipulate" a share price for that length of time, and to that degree, I don't think there is much I can say to convince you otherwise.
A takeover often happens because a company is relatively too cheap. Often it is too cheap because market fashions caused money to flow to other companies or asset classes.
Morrisons are a value style investment and value investing has been deeply out of favour in the last several years.
I think Morrisons are worth somewhat more than the 252+2p bid and probably within a week or two there will be a higher bid on the table.
With all the property plus a reasonable business operating from it, there is a lot of potential to sell and lease-back all the assets, then load the business with debt while extracting cash, window dress the accounts to show how well the business was doing under its new owners, then in several years time float it back onto the stock market for the same as it cost to buy, having pocketed the value of all its previous assets and some cash flows/dividends along the way.
I think buying the whole business at 254p, someone can make a 100% profit on this over the next several years.
I don't disagree. (Apart from the "window dress"(ing) the accounts bit).