I do believe this 50% run-up hurts the prospect of a takeover. Yes, VEI is good as a standalone stock and value is there, but more value could be unleashed with a larger company (PRY) absorbing and refinancing its debt. It's a foolish move by PRY to not bid while the stock keeps going up, with the same fundamentals, as they'll have to jack-up their premium as a consequence. I don't see the value in holding 20% of VEI stock when the company has such high debt - it really needs to be purchased. PRY has a history of vacillating & chickening out - I think I read somewhere that a disproportionate amount of their assets are goodwill from paying too much for acquisitions (or waiting too long).
I hope they realise this soon and make a bid for VEI in the 80c - 100c bracket; otherwise, as you mentioned Axiomax, they will have to go to 120c or more in the coming 12 months.
VEI Price at posting:
46.6¢ Sentiment: Hold Disclosure: Held
