Good timing (for once)

After buying a small stake in Southern Cross Healthcare on Monday, news emerges today that they are the subject of a "highly preliminary proposal with relation to a potential offer".  That was enough for a 56% jump in their share price, making them the top riser of the day.

As usual in these matters, events occurred in completely the wrong order.  First there was a 30% jump in the share price, then a statement from Towerbrook announcing an "indicative non-binding offer" (which triggered a further jump in the share price), followed by a sceptical response from Southern Cross: "the Board of Southern Cross has informed Towerbrook that it does not wish to enter into discussions at this time".

That triggered a brief downward blip, but the share price recovered to finish the day on 28.5p, up from 18p at opening.

I briefly thought about selling at 28p, but I've decided to hold on and see what happens.  Southern Cross started off so cheap that Towerbrook could still afford a pretty massive premium over the current price, and I did buy on the basis that they were worth 40-80p.

Southern Cross Healthcare

I picked up a few shares in Southern Cross Healthcare this morning at 19.47p.  This article on shareworld explains why.  SCHE now forms 1.4% of my portfolio.

De La Rue

I just can't stop looking at "bad news" companies.  Although I suppose a shipment of faulty banknote paper is in a different league to a 5 million barrel oil spill.

Today it's De La Rue.

Rok Group and Connaught

Two building services firms have recently seen their share prices hammered after announcing financial mismanagement, write-offs and warning over profits.  But while I think Connaught shares are probably heading to zero, I think Rok offer an opportunity - albeit a risky one.

Full details on shareworld.  (I disclaim all responsibility for the pun in the headline).

Update 16/8/2010:
Bought a very modest amount of Rok Group shares today at 17.97p.  They now form 1.4% of my portfolio.