Trading Update: DXC Technology

Into our hugs again...

We lay out the possible scenarios in the last email and decided that the logical choice is to take money off the table.

  • If the deal fails and prices thread lower. We will look to re-enter the position lowering our cost back at USD 23 - 26 if Salvino stays around to run the shop. (40% possibility)

  • If the deal closes and the share price stays flat. (30% possibility)

  • If Atos pay at the top range which should give another 10%+ upside (20% possibility)

  • If there is a competing bid at a much higher price (10% possibility)


Our 40% possibility came through quickly.

DXC had rejected the bid!

We had managed to sell 25% of our portfolio @ USD 28.50 when the market opened on Monday. We hope that some of you had managed to take some money off the table as well.

We will be repurchasing much of the shares we had just sold over the next 2 weeks between USD 23 - 26.

We do trade around our position when opportunity arises and this is one of those opportunity.


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