The financial press have been full of ALU of late since the takeover bid from US based software company Autodesk (ADSK US). The initial $38.50 bid was rejected but apparently discussions around $40 were also met with little enthusiasm by the Australian software business. Reading between the lines it feels like the board of ALU and especially the CEO & largest shareholder with a 7.25% stake, didn’t particularly embrace the advances from the US company.
Our take is simple, we liked the growth prospects of ALU below $30 when we went long and now that a respected US company values the stock ~$40 and the board of ALU have said on your bike it just reaffirms our analysis, we remain bullish looking for an initial break above $40, or ~20% upside.
MM likes ALU around current levels
Add To Hit List
