It will be 5 weeks tomorrow since the purchase of LifX was announced- LifX a smart lighting company seemingly with the world at its feet, but not able to keep up with demand for its product and not wanting to sell out to the big boys and lose their baby.
We found out we get to pick up one of the smart lighting leaders and innovators, we also get the sting of some accompanying dilution, but all of you ask yourselves, was and is it a bad move? Personally I see the synergies and I see a lot more good than bad.
The day after the announcement we traded between 9.1 and 10.5c, nothing has change from then until now, but we find our chart steeply dropping to bottom out at lows of 5.8c. What has changed? For me nothing, but whom benefits from the changes, not the people selling that is for sure, the companies picking up stock in BUD as a part of the deal definitely do, do they also have the clout to push the SP around?
We are 9.5 trading days to the EGM, what happens if it goes ahead? We get a world class lighting company, they give us a beach head in to the household if an opportunity exists, we give them the same into the commercial space and we also give them working capital and access to equity markets and allow them to increase and stabilise their supply, call me silly, but that can't be such a bad thing right?
What happens if it doesn't go ahead? Well we are no worse off than when we were trading in that 9-10.5c range, we are just waiting for a ship to come in or the next quarterly.
a 5 day VWAP will be calculated from the 18th, what would it take to get the SP back to 8-10.5c from here? Given nothing has happened to drag it down by 4c / 40% in the first place?
Do we have a leaky ship? Doubt it, the biggest holders aren't the ones selling ATM.
I hope all of you consider your positions carefully and the upsides and downsides of this deal before reacting to hysteria put forth on these pages.
All IMO and DYOR.
BUD Price at posting:
5.9¢ Sentiment: Buy Disclosure: Held