Technical Summary: Will get the boring stuff out of the way on this chart before we get to the takeover. Over the last five years the stock has been locked in a unrelenting downtrend. This has continued on the one year chart with the stock gapping to the downside on poor fundamental updates. This trend continued until the stock eventually found support. Then the fun started. The stock appeared to rally for three days into an announcement from the company that it had received a takeover offer at $1.70 per share. This price action appears suspicious and the question needs to be asked if there was knowledge of the bid before it became public? be that as it may the stock moved higher on the announcement before pulling back on profit taking. The stock then gapped higher again as it became news that FBU was raising its bid to $1.90 per share. With the stock now trading at around $1.70 there is still a significant takeover margin, suggesting that the market does not believe it is a certainty that the deal will proceed.
