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-C 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.

These charts are from August 2010. Below is today’s chart.

The stock did not drop quite as far is it could have, so perhaps some people missed buying it. Those that did, should consider selling soon for a nice profit. The run up from the lows can be counted in a number of different ways but a simple 5-wave is distinctly possible which would imply a drop back to, say $13. For the more patient investor it may be worth waiting for a serious take-over bid, which , should it arrive, would preclude any further drop.