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ALS - Alesco Corporation

Not sure why this one isnt getting much attention. Dropped to a low of around .60 back in March, but its now nearing $6. I was in at about $3.50, and the past couple of days its been flying!
 
These guys reported on 26 July. Exactly 1 month later they issue a profit warning slashing outlook by 1/3. Shares are down 25%.

Congratulations to management for the quick revision. It clearly demonstrates how efficient their accounting department is. Well done.
 
Am I missing something with these guys?

Takeover from Dulux for $2.05 - current price of $1.91.
Received favourable ruling from the ATO about dividends & franking credits.
If Dulux get 90% acceptance + declare offer unconditional - possible bonus dividend from Alesco...

Thoughts???
 

ALS has declared 27c FF dividend (gross up 38.6c) and shareholders will receive $1.63 further from Dulux.

That's $2.01 of value currently selling for $1.93. Depending on your tax status, of course, so speak to your tax accountant / neighbour / son-in-law / budgie etc.
 

And not to forget the capital loss provides a tax shield to offset other capital gains. These low risk opportunities seem to come up fairly regularly in the late stages of takeovers - although getting much volume is sometimes difficult.
 
And not to forget the capital loss provides a tax shield to offset other capital gains. These low risk opportunities seem to come up fairly regularly in the late stages of takeovers - although getting much volume is sometimes difficult.

And someone screwed up the ex-date orders so it actually opened at $1.85 when the remaining value is only $1.63.

I scrambled yet failed to locate any shorts.

It would have been free money.
 
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