well what a day for ISF shareholders. Stock closing at 15 cents which is only some 10% below the scheme price. This suggests to me that there must be some buying in anticipation of a higher offer. I dont hold ISF but am very long OCP. I note that OCP on the back of the ISF bid, the pending sale of Signature security, will have cash per share of $2.13 and still hold its 50% of very profitable Baycorp business (in their books at 55 cents per share). Thus it has now got NTA of some $2.68 per share and it closed at $2.07. This represents a discount of 23%. Some ISF shareholders may see some value in taking the ISF 15 cents and reinvesting into OCP at $2.07. Note that there will be less leverage should the ISF offer be increased, but also less impact should the offer fall through for whatever reason.
Just a thought, DYOR
ISF Price at posting:
15.0¢ Sentiment: Hold Disclosure: Not Held
