I like to invest long term in companies that have a takeover potential and are significantly undervalued. This surprisingly has been extremely successful in the last couple of years.

I'm not bothered about yield although that is nice. I'm just looking for an outrageously low entry point with takeover potential.

I've been fortunate enough to benefit from the followings
ALD - in at 115. Takeover offer now at 313. I'm holding as the price is currently 303 and maybe tiny chance of a bidding war.
SHAW - in at 113. Takeover at 340
CSG - in at 22.5. Closed at 33 ish before went through
PFL - can't remember. Takeover managed to scrape me out of a bad entry and I made a couple of percent. I sold on the first offer and missed out on the best rate
RSA. Takeover failed to go through but I sold and made about 40%
Resolution. Can't remember the details but this was on a nice slow uptrend and the takeover was the icing on the cake.

The only stock I have left now that fits my criteria is WEIR and tbh if I can get another couple of percent rise I'm selling as I think it's had it's run. Picked the wrong one here and should have picked Wood Group.


My thoughts are:
Possible further consolidation in banks, so OSB,PAG, VM. but I'd want a lower entry price.
PCF. I've never read a takeover rumour about this company but it has a banking licence acquired earlier in the year. On a five year time horizon this might attract someone, although banking is not it's business, car finance is. I'm in at 22p and I plan to hold for 3 years anyway so it's a little bonus that maybe someday will come to something.

I'm not interested in CLLN until the price drops to about 10p - it's a basket case and I can only see that ending up as a debt for equity swap.

I'll do some research and update in due course.

Any thoughts?