VRK halted

[Victor]

How will SSP v4 handle he halt today on VRK?  Tomorrow's close or cancel trade?

Cheers,

Victor

[Super Stock Picker]

Hi Victor,

SSP will record the close price of yesterday as our buy price. So, it will be the price before VRK was halted.

Of course, IRL, it was not possible to get that price on the market at the close. But those of you that have bought your stocks earlier in the day might have add a price close enough.

Now, if you had missed the price before that news, we would recommend not to buy it as it is expected that VRK will be a sell on Friday.

We usually do not hold stocks that have received a buy offer if there is no bidding war.

[DCA]

Personally I would like to vote in favour of a bidding war.  Hopefully by Friday we will have news from Mitek.

D

[garilou]

Hi SSP,

First question:

SSP will record the close price of yesterday as our buy price. So, it will be the price before VRK was halted.
 

I find this a very strange method. You bought it on August 18 at 0.81, and now you will change it for 0.89? The trade resumed and the close price for today (Sept 3rd) is 1.01! This is going to change your performance a lot! Why would you change your buy price?

Second question:

We usually do not hold stocks that have received a buy offer if there is no bidding war.

This I understand, but who knows if there will be a war or not?

The announcement says:
"The Offer, unless extended, would expire 36 days after it begins.".
What makes you think it will be done on Friday?
The price of the share might go higher then the offer of 1.05, if other people, like DCA, hope for a war!
Is there a limit time to start a war?

VRK will be a sell on Friday.

Why not wait till the deal is really done?

Louise   

[Super Stock Picker]

Hello Louise,

We were talking about the buy on September 2nd in the UPM v4. Of course, it does not change anything for the other portfolios that are already holding the stock. It is the first time we recommend to buy a stock on close and that the stock is actually halted at that time...

And obviously, we can not be sure if there will be a war or no. In a few other occasions, it was not so long to get an idea. Let's say that by today, the market is not betting a bidding war (stock is trading below the offer price).

But, anyway, if the stock get stuck there around the offer price, it will loose its momentum and we will decide to sell it anyway.

It is not about merger and acquisition but only pure momentum...