Bob,
I'd not rule out a rumour on FRO, and I really thought the stock would've pulled back to around 27-28, but certain telco stocks are red-hot now (BEL, for example). The P/E of FRO has me cautious, along with what I sense is a somewhat overbought market. I like the company, and if I had a position in it now I'd certainly hold, I am on the sidelines. I'd buy @ 27-28, but I don't put enough in this rumour-driven price to buy at 32. However , if I was to buy on a rumour, FRO would exhibit less volatility then some others I've seen were the rumour proven false.
I tend to think more in terms of a merger, where the premium just isn't going to be what people might be hoping for.
Hope this helps, Bob!
Dave |
