Friday, 31 October 2014

why i don't buy a stock just based on possibility of GO?

The aim of buying a stock is of course to make money. How this happens might be in form of stock price appreciation and/or dividends. General offer or GO is another way to possibly huat big if it happens. Like allgreen, thomson medical etc
Personally i don't put GO as a top or middle priority, if at all
1) one could get money stuck waiting for GO, worse if no/little dividends
2) even if rumours about GO are buzzing everywhere, stock price would likely factor this in already.
3) possibility of being stuck in limbo if offer price is unacceptable and company is delisted.
so indeed it can be a stressful exercise if one would to buy based on GO as a high priority.

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