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Today's stock overhang could disappear in weeks.
But given internal family bickering and a stock overhang, it makes sense that the deal is priced to sell.
But the chances of a major, sustained bounceback in the short term would be undermined by a major stock "overhang".
We note the very recent trading volume in the stock which appeared to address the near term stock overhang.
In a buy note, Cormac Leech of Liberum Capital said: The implied stock overhang is already fully discounted in our view.
On the placing Simon French at Panmure Gordon said: "The removal of the stock overhang should help eliminate the discount the shares trade at to Tui Travel, but more importantly a new supportive shareholder base will allow the group to pursue a long-term strategy of consolidation.
Similar(53)
In all probability this reflects a mixture of an overestimation of potential output and growth during the boom, the corresponding misallocation of resources, notably capital, the headwinds of the subsequent debt and real capital stock overhangs, and disruptions to financial intermediation.
So how much longer will investors have to endure talk of the "inventory overhang" plaguing semiconductor stocks?
Act I: a tech bust that sucked $4 trillion out of the stock market and left the largest inventory overhang in history.
The spate of good news has given hope to investors who have squirmed in their chairs like impatient children during the inventory overhang that has been blamed for much of the downturn in chip stocks.
The problem is the inventory overhang.
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Justyna Jupowicz-Kozak
CEO of Professional Science Editing for Scientists @ prosciediting.com