Saturday, March 20, 2010

Astro - correction

I don't know where I got the impression that the G.O. price was 4.20, when its actually 4.30 ... that being the case, the posting takes a different tack altogether. That meant that the price traded for the past 2 days resembled a normal G.O. and there does not appear to be any competing bidder, or some substantial shareholder accumulating shares to do something else.

That said, we cannot rule out that AK may have another buyer lined up. If AK sells a substantial stake within a few months after the G.O. at a higher price, that will leave another dose of bitter aftertaste (again). Of course we all can argue that he may have found the buyer AFTER the G.O. ... I do hope he does not do that again, as it is more important to appear "not to have shafted" minority shareholders again, than just monetary gains.

If indeed there is another buyer at a higher price, a "good CEO/owner" would do the deal now alongside with the G.O. as minority shareholders have bought and held Astro because of its undervaluation, and hence should be part of the fruits at the end. But thats usually spoken by poor analysts (poor as in monetary wise), maybe thats why some people are very rich and some are not.

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