ORG was the best-performing stock on the ASX200 yesterday surging +12.7% even after Brookfield Asset Management lowered its takeover bid from $9 to $8.90 but importantly it’s nothing meaningful and they haven’t walked like so many have post-COVID. We now like the risk-reward towards ORG which will pay a 16.5c fully franked dividend next week, at around $8 we can see the stock up or down ~15% this financial year but we favour the upside which should be aided by bond yields approaching the end of their bullish cycle.
- We like ORG and believe it will be successfully acquired by its current suitor with the new bid currently backed by the board.
This is a “situation play” but with a committed buyer, we like the risk profile.
MM likes ORG under $8
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