Author Topic: What do you make of this SENS?  (Read 2665 times)

Fawkes85

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What do you make of this SENS?
« on: September 28, 2015, 01:59:42 pm »
"Shareholders are advised that Santova has entered into negotiations,

which if successfully concluded may have a material effect on the price

of the Company’s securities.  Accordingly, shareholders are advised to

exercise caution when dealing in the Company’s securities until a further

announcement is made."

I think it means one of three things:

1. They will be acquiring a business or an asset
2. They are maybe being acquired themselves

Both these things will make their share price increase though I think and I do not see why they will put out a cautionary SENS like this if whatever they are doing will make the share price go up.

3. They may be selling off a part of their business

This might cause their share price to go down as they will be holding less assets and thus be worth less. I think it might be something like that.

I don't know though. You guys are more experienced investors and have been dealing with this much longer than me so you will be more insightful. What do you guys think it means?
« Last Edit: September 28, 2015, 02:01:13 pm by Fawkes85 »

Pluto

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Re: What do you make of this SENS?
« Reply #1 on: September 28, 2015, 02:30:57 pm »
Quote
Both these things will make their share price increase though I think and I do not see why they will put out a cautionary SENS like this if whatever they are doing will make the share price go up.


I can't answer it all but i'm pretty sure they are required to issue a SENS whether it'll have a significant impact on the share going up or down.

jaDEB

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Re: What do you make of this SENS?
« Reply #2 on: September 28, 2015, 02:37:50 pm »
 8)
jaDEB

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Fawkes85

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Re: What do you make of this SENS?
« Reply #3 on: September 28, 2015, 06:34:01 pm »

I can't answer it all but i'm pretty sure they are required to issue a SENS whether it'll have a significant impact on the share going up or down.

Today there is a report by Moneyweb about Telkom making pretty much the exact same cautionary announcement. They say it is mostly likely to do with Telkom trying to acquire Cell C. So I guess you are right. They make the cautionary announcement even if they are doing a deal which can affect their share price positively.