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Thoughts on ORG in light of the rejected takeover & energy transition

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    Thoughts on ORG in light of the rejected takeover & energy transition

    Keen for your thoughts on ORG in light of the rejected takeover & energy transition. Since the initial bid the business appears to have made strides in improving its performance. On the official announcement re the rejection of the scheme proposal the stock didn't collapse anywhere near the pre-bid price. Do we expect further SP declines or does this stock now represent good value in light of the secular tailwinds, capital backing from AusSuper and offering a reasonable divi.

    Answer

    Hi Scott,

    We discussed ORG at length in our Portfolio Positioning Report on Wednesday. Our conclusion was:

    • We like ORG into weakness under $7.50 with uncertainties likely to keep us pedantic towards any entry, especially as a washout of hedge funds/arbitrage players could easily take this crowded stock lower into our buy zone – less than 5% lower.
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    Origin Energy Ltd (ORG)
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