Our Q&As are emailed in our Saturday Morning Report, find the answer to this question below.
I'd value your opinion on Bapcor, which has had a rough time and is offering shareholders shares at $0.60 each. Should we chase the loss and not get diluted? It seems like we have little choice but to buy and hope, sitting on such a large loss from $5.20 only a year ago! Thanks, Campbell.
Hi Campbell,
This automotive parts distributor and retailer has endured an awful few years following a number of downgrades – the last one was in December, discussed Here. At the time we said: “it’s looking like a value trap rather than a value play until management can prove they’re capable of navigating the increasingly competitive environment.“
As to taking up the 60c offer with the stock trading ~80c it has some obvious merit. For clarification:
Our normal process here would be to see how it is trading closer to the 19th, and if the discount is still attractive, apply for shares.
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