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OT - ALU - why so
weak?
<p>OT - lt cap, Excuse me, as I hadn't been following all
the merger/buyout news - I did see in your earlier post that you
thought NOK got the better of the deal - but I'm puzzled, and a
quick search for news yields nothing on the subject, of why ALU is
off 20% today, while NOK is down less than 4% - can you summarize
why the precitpitous fall after the humongous rise? BTW,
Cannacord-Genuity dropped NOK's PT from 12 to 11, rating buy. You
had said you might add if it fell under $4, and here we are. And
who gets what stock - NOK for ALU shares, or the reverse? Thanks,
if you get the chance.</p> <p> </p>
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It is down 20% because the deal is worth 0.55 shares of NOK to
each of ALU, somewhat of a takeunder from yesterday's price.
The share price is now indeed below the $4 level, but I will wait
until the emotional trade is done with. Right now, many folks
are panicking and sentiment has gotten destroyed. I have been
trying to punch holes on my due diligence of the combined company
and while I agree there are challenges, I keep coming to the
conclusion that NOK will come out far stronger. I would agree
that it will take time to go through the transition to fully merge
the operations. But it now has a much expanded addressable
market from which it can now grow.
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Author:
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LongTerm
CapGains
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Subject:
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Off Topic
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Sentiment:
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Neutral
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Date:
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04/15/15 at 1:19 PM CDT
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Also good to hear that Cannacord-Genuity still
optimistic. I mentioned the NOK 5 year chart a few posts
away, I do believe that NOK has base lined for a pretty good amount
of time, it is close to finding new direction, I am betting it is
to the upside after this shock is fully dampened.
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Author:
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LongTerm
CapGains
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Subject:
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Off Topic
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Sentiment:
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Neutral
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Date:
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04/15/15 at 1:23 PM CDT
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