Company’s shares soar over 26% Monday.
Shares of Kangaroo Media (TSX: T.KTV, Stock Forum) surged 26.7% to 9.5 cents Monday afternoon, as posters on the company’s bullboard weighed in late last week on the company’s share price movement and speculated on buyout rumours.
No news was released by the company last week or on Monday, but members gave their opinions Friday and into the weekend on what could be moving the share price. The company’s stock also jumped three cents on Friday. Kangaroo develops and markets a handheld device which allows spectators at live events to see and hear what is happening.
Here are the highlights of a conversation on the board on the topic last week:
zbalata1 noted: “The bids and aks are even at .05 we should go up quiker to the $1 value because to a small float of shares. A buyout is still in the equation for Direct Tv or Sprint for a price between $1 and $2 maybe more...[sic].”
colorisgreen2 added:
“anythings possible! from what i hear, word on the street is good. somethings going on behind the scenes ;) glta[sic]”
On Friday, cini commented:
“Usually i am the skeptic on this board but let me add to the hype for a change.
something is up. i haven't seen these kind of volumes sustained for this long. the volume is more intriguing than the price increase to me. it might be as simple as one analyst recommending or maybe something bigger. maybe that olympic marketing guru board member swung a deal for vancouver 2010. that would be cool to see a CDN tech company displayed at the home olympics. good story there![sic].”
MisterB gave his thoughts on the share price, saying:
I would view this movement as a result of two things:The main sellers are close to, or are DONE for 2008 - which has alleviated the pressure on the stock. Year end bargain hunters looking to establish positions for 2009 knowing KTV is very undervalued. To me, the action over the last few days is an indication that normal supply/demand will follow going forward, and we know how that can be with a small OS. Huge upward spikes, and huge downward spikes (as we've seen). ...and, just possibly, there is news on the horizon. That, however, isn't the big factor here - which I believe to be "seasonality" of the market. Looking forward to the next 6 months[sic].
Generator said:
…IMO I would have to fathom that a takover is in the works here. It would be smart of the acquiring firm to accumulate as many Tax loss shares as possible (from Deseperate Mutal Fund Holders) during a Brutal Tax Loss Season before any formal announcements are put forward This would make perfect Strategic sense.In fact I think this is what is happening.This is ordinarily a very tightly held stock with an otherwise small public float. Something is going on here. I sense the tide or balance of Power is shifting. The interesting thing to note is that KTV currently has over $0.30 cents per share of cash on their Balance sheet. That $12 Million dollars would have to be the minimum bar for any offer. Plenty of Upside in the works nodoubt either way...takeover or Major Deals or whatever ![sic]
