Most of you won't be familar with this stock but it's one of Canada's oldest steel makers. This week, the stock shot up from $38 to $58 on takeover rumours. The TSX halted the stock and requested an update from the company. The company confirmed they were in talks BUT indicated the potential purchase price was a fair bit lower than where the stock was trading at. The stock dropped about $6 when it reopened for trading. I find this situation very interesting from a market perspective. Here is a company that has been through bankruptcy TWICE, and for a good part of its existence, has been a money loser. It has only been the last few years that the company has generated healthy profits. As with any cyclical industry, the tide will turn once again. I find it very amusing how short people's memories are. Do the executives who are buying these other companies not remember how lousy things can get? What are they thinking? ARE THEY THINKING? Anyways, it was interesting to see how much of a speculative premium the market built into the price only to have the company knock them down. Is this a proxy for the whole market at this point? Is there a huge speculative premium built into the prices of most stocks? Is this like 1989 over again when the UAL takeover failed and the wind was sucked right out of the markets?