SLE, Sara Lee

sle jan 2011

We have been waiting for sometime now for a takeover bid to propel this stock higher (see blog Aug 2010 and Jan 2011). This is a near perfect EW cycle. 5-waves up into the top at $32, than a drop back to the 4th wave of previous degree in a very nice A-B- where C=A (even if it arrives 1 1/2 years late) Then a new bull market or, at the very least a B-wave up. The $20 bid will, of course, frustrate the “normal”progress this stock would have made without the bid. The interesting take from this chart is that you should not be in a hurry to tender into the bid. Without it the stock might have gone to about $24 so , who knows, the bid may be improved or bested by another suitor.