All taken too early…..

With news that one of our portfolio stocks, Link Administration (LNK.ASX) received a takeover bid (from Pacific Equity Partners and Carlyle Group) for A$2.8 billion, I am reinforced by the large amount of capital scouring the world for investment opportunities.

Link’s stock price rose 24% today.

This type of good news is often more frustrating that rewarding as it reminds me of the other ASX listed stocks (which client portfolios have owned) whom have been ‘taken’ far too young.

Some of those companies were SAI Global, Mantra Group, Goodman Fielder, Scottish Pacific, APN Outdoor, Healthscope, Toll Holdings and AWE.

After all, it is the business of private equity and the like, to buy companies ‘early’ to they can improve them (see ‘dress up’) and on-sell them either in a new IPO or as a trade sale.

Look out for some of these names re-appearing on the market in a coming IPO wave which I’ll call “re-equitisation”.

October 12, 2020
by Rob Zdravevski

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