I really find this very difficult to call. 52% is a fine level of share ownership from which to mount a bid, but I'm not convinced that's what ZED wants. With the shares in the high 30s the cap was well under £30m, they could probably have bid £60m and taken over the company. However, the earn-out obligations meant that it was difficult to put a true assessment on the company, since some potential payments relate to value in shares alone. They look to have bought a good strategic alliance, each will be helping the other.
This cash injections may well mean that MOB can pay off it's earn-out obligations in full. If so the capitalisation should be far higher than suggested by the 52.25p close on Friday and the £34m cash injection. It looks like MOBs Christmas wish has come true.
I'm looking forward to see where they open tomorrow, my gut feeling is that it will be in the 50-60p range, but who knows? If the market thinks that ZED will buy them out in full in the near future then perhaps another 10p or more. If the speculators get on board then anyones guess.
I agree that under 60p they will be very cheap and would rate a buy. Above 70p I would consider them more speculative. A comment from another forum suggested 80p, that would suprise me indeed.
£4? A few years away, if the company remains independant.
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