Update on AMTD for this quarter. Story posted here.
Well, I exited this one pretty quickly, today. It spiked to almost $13.95 yesterday on merger rumors. I exited it at about 13.11. S&P report stated:
We think AMTD would make attractive acquisition candidate and that significant synergies could be achieved. Also, we do not think management control issues will present a problem for an acquirer. We still see FY 05 (Sep.) EPS at $0.80, but are raising our 12-month target price to $14 from $13, or nearly 18X that estimate. Our downgrade reflects our view that a bidding war is not likely, given that we see only a limited number of potential suitors.
I am looking for a re-entry point below this, on the hope that prices will drop again today… on lack of news. I do think this is a very attractive company to invest in, but I don’t know after the merger, though, I’m not keen on mergers because synergies aren’t always to be found, and it takes quite a while for the merger to be completed, viz-a-viz JPM’s recent merger with Chase, and AOL with Time Warner.
Kenneth