I stick by my previous post on the much-hyped takeover. It's not necessary for the only party that would be interested, Compare the Market (Multiple offers? Yeah, right – the market was never told who they were). CTM have invested about 22M (average of $0.50 per share) and have very deep pockets. All they have to do is wait. When the fundies sell out (those that bought in when people thought a takeover was imminent), it will drive the price down to a level where CTM can buy the company at a much cheaper price.
Dilemma for the fundies (Forager in at average ~$0.70; Renaissance at average ~$0.80). Go first and lose; go later and lose more. Hold and lose in opportunity costs. When the share price drops again as a result of the ongoing disaster this company is (reflected well in their annually declining gross profit, multiple CEOs, board and managements sackings & resignations, regular failure to meet targets, frequent downgrades, etc) I would think we'll see some movement.
iSelect is really only worth the value of its dwindling cash in the bank and trailing commissions, which will decline as sales drop and costs rise. Add to the mix a badly executed capital management program (mis-management is a better name) and an inept, negligent, board that has overseen all the dud appointments and market deceptions, and you wonder who would buy shares.
I'm not downramping this stock to short it. When I was a shareholder I approached a law firm about the possibility of a class action against iSelect. After review, their response was that the case is actionable, but they wouldn't take it on because the company doesn't have enough money to cover the costs that would be awarded, let alone compensation to shareholders.
