Another of my stocks, SLA, has been bid for by PE/conglomerate WES (which i also hold). how do i feel about this? although a healthy premium to the current share price im non plussed. i love takeovers in bull markets, not so much in bear markets. my thesis on SLA was simple, in that cosmetic treatment (botox etc) would prove much more resilient than the market and talking heads believed, therefore triggering a better rating. moving from discretionary to more a staple rating. while WES must agree, i would rather see it play out.

as some background SLA IPo'd not that long ago at $3.45 and raised capital at $4.30. the bid price is $3.15. i dont see anything special in this offer. the board and major shareholdres have rolled by the look of it. whats goiing on? IMO, like we saw in the 1990/2 bear market, shareholdrers and especially management take their share price to heart, both the highs and lows. to me very few mgt teams actually have a good undrestanding of valuations (WES/MQG stand out). most get excited at a high share price and depressed at a low share price. so they roll. large shareholders want the quarterly kick to performance.

back in 1990/2 i had a few companies taken over at low (IMO) share prices only to re-emerge years later and refloated a much higher capitalisations, much to my disappointment (to be mild), i wonder how much of that we will see this time round, time will tell.

of course my ongoing exposure to the biz through WES is enormously diluted (to nothing really), thats my view could be wrong