The earth moves
When Wesfarmers announced the demerger of Coles, investors cheered. Those jubilations went mute, however, when the same company – renowned for itsinvestment andcapitalallocation nous – turned around to make a bid for Lynas Corporation, a miner of rare earth metals.
The market’s shock was palpable – Wesfarmers’ market value fell by more than $1 billion the day the bid was announced. Yet when a smart investor makes an unexpected move, we should take note.
Lynas’ share price shot up 35% but at the time of writing still
