Origin Energy Takeover (ORG)

Products SPA3 Investor
1

Good morning Members,

Origin Energy (ORG) is the subject of a takeover which was announced on November 10th, 2022.

In accordance with the SPA3 Investor ASX Equal Weighted Stocks Investment Plan, ORG will be sold from the portfolio today to prevent the possibility of having cash tied up for an unknown length of time whilst the takeover is underway.

image
image940×74 8.06 KB

Today marks the 20th day since the takeover announcement.

You can view all the Public Portfolio Investment Plans for SPA3 Investor in the Resources section of the SPA3 Investor short course.

2

Hi David,

I note that today a BAP has arisen for ORG (and that it has the second highest ranking of the day), and it is still in the process of being under due diligence (which has been extended until Jan 16th) by the potential aquisitor.

I have not seen this occur before (or at least where it met my criteria for an open trade) and was wondering what the SWS position is on this situation. I assume, since I don’t see anything specific in the Public Portfolio Investment Plan for this situation, that (assuming it also has more than one open position) this would therefore be taken?

Thanks,
Graeme.

3

Hi Graeme,

This is a totally new trade (that is, a new entry signal has occurred since the 20-day Takeover Exit) so the BAP is valid.

The ASX Public Portfolio will opening a position with a MoC order at the close today.

4

Thanks for that Gary - is SWS going to place MoC for all portfolios now? I thought it was quite marginal for the ASX?

5

Nick,

MoC rather than MoO on the ASX seems marginal compared to the big difference in the US market.

But every comparative simulation we ran still showed MoC being better than MoO on the ASX when comparing Annualised Returns and Max DD, and the resultant Risk:Reward Ratio.