Armstrong

Armstrong is likely to open lower as maker of rubber components used in electronic products reveals takeover talks between major shareholder & 3rd party have been called off without any outcome. Stock up as much as 31% since beginning of Jun, when Armstrong said unnamed 3rd party had approached its controlling shareholder to consider making possible offer. But with no conclusion, players who bought in anticipation of corporate activity may be prompted to cut holdings.

However, any downside may be mitigated by buying from investors hopeful on company's longer-term outlook, backed by magm's guidance last month for better 2H10 performance vs 2H09. 1H10 net profit soared to $14.2m vs $3.8m year earlier on improved performances by its automotive, consumer electronics businesses. Stock was trading between $0.335-0.40 before takeover news surfaced in early Jun. Support tipped at $0.41.