Sweet profit at Zetar

Well you don't expect that kind of RNS after hours on a Friday evening, but I'll take it!!!

It appears that a German company called Zertus have made a cash offer of £2.97 for the entire issued share capital of Zetar.

As you may remember, I bought shares in Zetar in July 2011 (see blog dated Monday 25th July 2011) for around £2.20.

If you read the post then you will see that, longer term, I believe that they are probably worth between £4-£4.50.

However, I'm not going to turn my nose up at a 33% profit in just over a year. Where to put my profits next is the question that will occupy me now, although there are still plenty of small cap bargains.

I suppose that the offer wasn't a surprise really, and in my July post, I did say the following:-

"There has been plenty of consolidation in this sector in recent times (think Cadbury’s and Uniq). In fact whilst Zetar are looking towards organic growth, they are keeping an eye out for small bolt on acquisitions, although will they inevitably become a target themselves?"

 

Plenty of small cap companies are still hugely undervalued, the predators know this and are sniffing around.