Those of you who follow the Blog will recall that we did post an article on BHR in mid-January of this year. The stock was trading at approx 22/23p. The whole emphasis of the article was the market rumours circulating of predatory approach’s this year. A 35p target being mooted by many brokerages as the bottom book figure. Well as foretold the approach has now been made official! (foretold on the worlds favourite blog!) Unfortunately the bid has been timed to perfection by the Fox (bidder). It looks like a smash and grab in a hen house to me; in the wake of the Global uncertainty. What better time to buy when the stock and Global markets are in a state of panic. 16.25p is highway robbery!
Still it does go to show the strength of BHR in a market shot and ridden by fear. It certainly doesn’t reflect fair value in any way whatsoever and the rumour from contacts is that the company are seeking an increase in the offer.
Keep them on your watchlist.