Q: Are you aware of any reason why GSY popped so much of late, especially in the last two days? Usually this kind of jump only occurs if there is a potential takeover bid (just guessing here). Thanks.
5i Research Answer:
Many US financial companies are moving up even faster, as investors seek out companies that are highly sensitive to interest rates. There was no news on GSY. We doubt management would entertain a takeover at a valuation of only 11X earnings, but we have long thought a privatization might be a possibility.