Can We Be Sure Of Shire Below £30?

Shire seems to be one of those companies where everyone other than the management of the company are aware that below £30 it is fundamentally “too cheap” and that anyway, on a big picture basis, its future should be entwined with a larger international player.

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Of course, for many large companies these days, the combined business prevention entities of politicians, regulators and the anti-rich squad mean that many a decent deal like GKN gets blown out of the water. However, in the case of Shire it could very well be that it is days, rather than weeks or months, before some M&A developments are forthcoming. On this occasion the company would be mad to protest.

At the very least, current share price levels should offer a near term boost despite a falling market.  It has been interesting that despite the plunge in stocks, smaller group Vectura (VEC) was up 8%, suggesting that drugs may be regarded a more defensive in a rising interest rate environment.

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Disclaimer

Zakmir.com is a purely journalistic website – Zak Mir is a member of the National Union of Journalists. There is no intention here of providing financial advice. It is  recommended you seek an independent professional opinion before deciding whether or not to take any action with regard to anything written here.

Author: Zak Mir

Financial commentator, interviewer, technical analyst

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