Our Q&As are emailed in our Saturday Morning Report, find the answer to this question below.
Hi MM, Further to your update this morning on NCM, for those who do not hold, what level would you consider a good point to buy in if the share price keeps falling? Or would your preference lie with other stocks such as EVN/NST (recognising that this is, of course, price dependent to some extent)? Cheers, Darren
Hi Darren,
Yes, it’s all price dependent really. We probably would not buy into NCM now given what’s at play. The conundrum there is it would look attractive if the gap between the NCM price and the implied value of the transaction opened up more, however the market is fairly efficient so by definition it would likely mean there was a growing chance of the deal falling over.
Probably best to run with the KISS principle – we intend to buy NST at some point soon if we can jettison our NCM at a decent level relative to the implied value of the NEM bid which as at Saturday morning sits at $28.61 for NCM.
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