I am not so much a pessimist on SXE. Yes they have a trading...

I am not so much a pessimist on SXE. Yes they have a trading halt with an announcement to come. What gives me positive vibes on this is that the major shareholder bought 813.9k shares back on the 23rd April. If there was something nasty coming down the pipeline I doubt that he would be topping up his holding.

The note states a change in the composition of the board! A change in the composition of the board shouldn't drive a trading halt! I would have thought.

There is definitely a possibility of a transaction of some sort, either a meager or a sale of the business but I doubt the latter due to where the SP has dropped to over the past few months. (I would like to see a meager with CMI!)

The business is trading at $0.28/share and has a cash backing of $0.21/share, therefore valuing the underlying business at $0.07/share or $11.31m. Depending on how bad the second half is that's still quite cheap.

Management and the board need to protect the cash and try and mitigate the margin hit with reducing costs across the business.

A takeover of SXE is a tough call when you have 2 major shareholder with the ability to block the deal and a further 2 that are not far off being able to block the deal. In essence you need to get the top 5 shareholders thinking the same to let the takeover get through. Tough call!