Thoughts on various takeovers!

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Question asked 17/06/2021

Thoughts on various takeovers!

Hi James & Team, To fund any pullbacks what are your current views on the following stocks I'm considering to sell.- TAH (Tabcorp), BLD (Boral), CSR, and HLS (Healius). With takeover offers on BLD & Tabcorps wagering and media business would you be holding or selling into the strength of the takeover offers.

Answer

Hi,

The 4 stocks you’ve mentioned all look solid which is no surprise considering the takeover activity around both BLD and TAH. The 3^rd CSR Ltd (CSR) is actually our favourite at current levels with an initial target ~15% higher.

Takeovers can be tricky and not always a binary call, we are long Crown (CWN) and Altium (ALU) who are “in play” and we are holding both looking for better offers, moves that can backfire if offers are withdrawn and / or higher bids don’t materialise.

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CSR Limited (CSR)

LAST UPDATED 17/06/2021 08:45

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