Small Cap Value Report (Wed 23 May 2018) - AIEA, FST, SND, OPTI, BOTB, MKS
Good morning, it's Paul here!
There's plenty of news to report on today. A reader has asked me to look at Marks and Spencer (LON:MKS) results. I'm just printing off the RNS, and will have a look at it later. Let's get the small caps out of the way first!
Airea (LON:AIEA)
Share price: 54p (down 10.7% today, at 10:10)No. shares: 41.35mMarket cap: £22.3m
(at the time of writing, I hold a long position in this share)
Bid talks called off
The unsolicited takeover bid approach from James Halstead (LON:JHD) has fallen through, with no agreement reached. It's interesting to compare the nuances of the statement from JHD here, and Airea's response here.
As you can see from the candlestick chart below, there was a big initial spike down in price first thing this morning. This is because the market makers would always heavily mark down any share where bid talks have ended unsuccessfully. Then they wait to see what happens in terms of buyers/sellers, and subsequently move the price in line with demand...