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Is It Still An Opportunity?

 You want to invest in a company but it is going through the process of a takeover. Should you still buy in?

There are a lot of things to consider here, and the first is your appetite for risk. What is your plan? What is happening aroung=d the takeover?

For exampl, some years ago, I had shares in Petrel Energy. They were taken over ina single move by a single company. So there was no opportunity for anyone to buy in before the takeover was completed.

Fast forward to today and I have shares in Warrego Energy. Once again, a takeover is happening. This time, however, it is a competitive takeover. In other words, there are a number of companies (so far, it's 3) who want to own all of Warrego.

Having aa look at the chart of Warrego's share price shows what has happened since the takeover moves started (https://www2.asx.com.au/markets/company/wgo) and a bit of reading indicates that this action will continue for another 6 weeks. 

So, YES, there is time to jump in. Yes, there is the possibility to make a profit, and many are jumping in to do just that. There is a lot more at play. ANd yet, there is still a risk. If the major bidder decides to back off, the share price will fall, and sharply.

So getting in during a takeover battle like this reies on timing: when you get in and when you get out.

The lucky ones in this battle are the long-standing shareholders who bought in before the rapid rise in share price. But that doesn't mean you can't make a profit yourself. So, if you're up for it, jump in and see what happens.

If not, don't stress. There's always another train coming along the track.

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