STOP AND THINK
Adapt IT has the stated intention of growing organically and by acquisition, so why did the share go wild when the company issued a cautionary stating “negotiations in respect of a possible acquisition”? The stock rallied as much as 11.5%, before closing a more respectable 2.8% up on the day of the announcement. Again, people need to think for a moment and not chase fastmoving prices. No single deal is going to be that massive in the life of Adapt IT as it would simply mean far too much risk. So the deal is likely to be a smaller bolt-on acquisition or maybe an entry into a new field, as it did with Aquilon.