Pinned straw:
Interesting how the market reacted to the news. Maybe it was thought that they'd be able to get out of the cost entirely or at least get a better deal than has been agreed? Or maybe it's just a case of "buy the rumour, sell the news".
If I recall, Alta Fox built its EML stake around 50-60c, so they would have made their money selling out at ~$1+. Not a bad return for 1+ year's work with 1 Director on the Board! This explains the fall to around $1 in the last 2 or so weeks.
With Alta Fox out, PSCIL cremated and Sentennial sold, EML is now back to where it was prior to these events, ie. when the market was bullish as hell at its growth propects. EML is that much wiser on acquisitions, has a clear strategy around growing the core business, a clear focus on cutting expenses and a big tail wind of high interests that look like staying high for some time.
8% + of the register would have $1 as their cost price, plus the others still hanging on for dear life from a much higher entry point.
I thus didn't see a wholesale of EML coming at all as I didnt see a compelling reason to do so. They are cash generating, profitable and growing. Alta Fox's exit reduces the risks of a sale.
If the market was bullish about EML's prospects back then, then it should start to be bullish again now once it has recognised that the old dog in the doghouse has decisively cleaned itself of crap it threw at itself.
Just re-read Ian Cassel's article on Turnarounds (which I like very much). I think EML fits his "exhilarating turnaround" criteria perfectly and is in step 4 of his 7 step criteria:
Discl: Held IRL and SM, looking to top up again.