Ann: EDMS merger with Hughes Drilling , page-2

The deal seems to make a lot of sense.

I could see them posting a NPAT in FY12 of about $14 million when you allow for tax loss assets (and assuming Hughes hits the high end of the NPAT guidance). That sort of money justifies a market cap of $100 million plus or about 8c a share.

Nice gains today but it looks like some sellers are determined to hold it sub 3c.

I guess they don't want the price getting ahead of some further news about how the proposed merger will benefit shareholders.