Quick Win by the Algorithm: Amended Amalgamation Consideration For Global Sources

Quick Win by the Algorithm

On May 18, 2017, the I Know First algorithm issued a bullish forecast for Global Sources Ltd. (GSOL). GSOL had a signal of 148.19 and a predictability of 0.02. As a result, in accordance with the forecast, the company’s stock increased by 81.01% in just 7 days, showing a quick win by the algorithm.

Quick Win

Global Sources Ltd. is a business-to-business (B2B) media company that provides information and integrated marketing services, with a particular focus on the Greater China market. The Company, together with its subsidiaries, provides services that allow global buyers to identify suppliers and products, and enable suppliers to market their products to a number of buyers. Its segments include Exhibitions, Online and other Media Services, and All Other segments.

Global Sources (GSOL) announced an amendment to the previously announced agreement with Expo Holdings I Ltd. and Expo Holdings II Ltd., a whole owned subsidiary. The original amalgamation consideration was for US$18.00 per share in cash. As a result, the revised amalgamation is approximately an 11.1% increase over the previous consideration to US$20.00 per share in cash. Interesting to note, is that GSOL’s closing price on May 22nd, 2017, was US$12.00 per share. 66.7% below the adjusted agreement and plan of amalgamation.

Global Sources’s board of Directors received an offer from a third party on May 24th, 2017. The proposal was to acquire all outstanding common shares for US$20.00 per share in cash. On May 25th, Expo Holdings I Ltd. made a proposal to Global Sources to amend the original agreement. When voted upon, the company’s board of Directors unanimously approved the Amended Amalgamation Agreement.

This bullish forecast on GSOL was sent to current I Know First subscribers on May 18, 2017. 

Before making any trading decisions, consult the latest forecast as the algorithm updates predictions daily. You can use the algorithm for intra-day trading. The predictability tends to become stronger with forecasts over longer time-horizons such as the 1-month, 3-month and 1-year forecasts.