Q: PNG trading was halted late yesterday and I'm assuming it had to do with the post-market close announcement of Kraken's $615 million purchase of Covelya Group. I know PNG is a stock that is highly favoured by you right now and as such, am confident you have a better understanding of the purchase. Could you please provide your expertise on what we should see from PNG stock price short term, as well as what your overall thoughts are (good and or bad), for this acquisition? It's not really a small purchase, (it looks like just over 21% of PNG's market cap as of March 3rd close. Thanks for all your insights as always. Cheers, Don
5i Research Answer:
We have comments posted now; we would expect a drop today in the 75-cent range, perhaps more, and then a settle and a slow re-tick back to prior highs. IF US investors adopt the company and like it more with this deal it could see a faster bounce. The sector remains very strong so the timing is good here.