Q: So, after the market closed yesterday, PLC announced they were withdrawing any further involvement in the purchase of Carriage. I would have expected today to be a "down" day...due to the perception that PLC would not be "growing" as per their stated 5 year plan of growth by acquisition (my paraphrase).
However, today PLC is up 4%. Is it due to the market being relieved that PLC is better off not having to add debt to their balance sheet?
A bit confused...thanks...Steve
However, today PLC is up 4%. Is it due to the market being relieved that PLC is better off not having to add debt to their balance sheet?
A bit confused...thanks...Steve
5i Research Answer:
This is likely the reason; PLC does already have a leveraged balance sheet, and in a time of higher interest rates investors get more nervous about debt than they get excited about acquisitions.