Friday, 12 February 2010
KDD trading update
This week there has been an statement saying that they are in early takeover talks. Rumours say the offer could be 22p. The price of KDD has shot up on the news and then fallen back.
This morning there is a good timing opportunity to buy in at this low price. The chance of a bid at 22p leaves a 50% profit possible within a few days, yet also the downside from 14p if nothing happens is unlikely to be more than 3p - not great, but still a good long-term bet. Of course, trading short-term and ending up with long term holds is the way lots of people get poor share trading. Still, this is a clear opportunity.