The purchase was solely based on the assets. But the unlocking of value can be a myriad reasons:
1) Mergers and acquisitions (because they are trading cheaply)
2) Insider buys (because they are trading cheaply)
3) Earnings turnaround (business improved or expected to improve)
β
The case for Creative is #3 with the new produce release.
β
Basically you buy cheap and you will make money when something good happens. It is like investing in an F student who only needs a D grade to shift perceptions. If you buy an A student, you better hope it never get any other grade other than A.
The purchase was solely based on the assets. But the unlocking of value can be a myriad reasons:
1) Mergers and acquisitions (because they are trading cheaply)
2) Insider buys (because they are trading cheaply)
3) Earnings turnaround (business improved or expected to improve)
β
The case for Creative is #3 with the new produce release.
β
Basically you buy cheap and you will make money when something good happens. It is like investing in an F student who only needs a D grade to shift perceptions. If you buy an A student, you better hope it never get any other grade other than A.