Anyone here holding shares in Celsis? I bought in on a tip sheet recommendation a couple of months ago and it's been a bit lacking.

Was wondering if anyone knew of any reason for the recent sharp fall in price? Nothing on the RNS.

Doug

A brilliant set of interims. This stock deserves more recognition, imho.

The sp has been about as active as this bb - until yesterday.

DON'T ACCEPT THE OFFER!

Wait for a better one, see below:

From the F.T on Friday, David Schwartz column:

Last Monday brought news that Celsis, one of my recent trades, was the target of a surprise takeover offer. Ordinarily, announcements of this nature are pleasing. But the Celsis offer brought little joy. The acquirer offered 232.5p per share, a disappointing premium over the previous days closing price

I do not understand why the Celsis board accepted this weak offer. Celsis is a steady profitmaker. Company-sponsored research by Edison suggests its fair value is almost one third above the offer price. Celsis pays no dividend although it can afford to do so. I suspect that a commitment to pay a reasonable dividend could have boosted its share price to a level very close to the offer price, assuming management wished to remain independent.

Another point to consider is that the world economy is at the bottom of a downturn and an expansionary phase approaches. Market statistics suggest a bull market is underway. In this kind of environment, an independent Celsis will probably be worth more in the near future without a takeover premium.

My conclusion is that the acquisition price is too low. I wonder why a major financial institution such as Gartmore accepted such a poor offer so quickly. I contacted Gartmore but no one was available to explain its decision.

The deal is now quite advanced with 38 per cent of the shares already committed. Even so, I am hopeful that uncommitted institutional investors with clout will do the job that the Celsis board should have done and demand a higher price.