Amazing how quickly the tide can turn in deep-value situations. I blogged about DVN last week discussing the monster discount to NTA and the first positive news in a really long time. And now major shareholder - Leighton (they own 50.6%) are considering selling their stake, which potentially opens up the company to a full takeover bid.
I just had lunch here in Sydney with some market colleagues discussing how tough trading takeover arbitrages have become: for me it is incredibly tough work to trying to second guess what other people are up to, compared to finding '$1 trading for 50c' trades. And so it is with DVN: I don't know what the next corporate move from here is.
Funnily enough, a rapidly advancing share price can be a nuisance: I wanted to buy a chunk more stock following some more research, however as the share price has gone up the potential return on my research time has gone down. There are of course worse problems to have.
Kristian
Disclosure: own DVN
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