Argex Titanium Inc. ARGEF

RE: Buy out on horizon?

[morricone]

Over the last year the stock price had drifted down to below .40  During the many months while we were sucking exhaust fumes down there a lot of shares changed hands, finding new buyers at that level.  Now that the price has more than doubled there's a lot of those buyers from back then who can't resist an opportunity to double their money. They're taking profits now.

In doing so though they're passing their shares on to new people who having bought at .80+ will be holding longer term looking in turn to double their money.  A new base is formed and as others have mentioned with details of the PPG alliance yet to be revealed and with the company continuing to move ahead on this year's objectives I believe there's substantial opportunity for the share price to move up this year.  The weak economy and the turbulance in the stock markets is a problem in the short term though.

There is no buy out coming. PPG as part of their eventual agreements with Argex will almost certainly be prevented from doing this in the forseeable future. There is no reason though for them to do anything anyways - they'll get everything they want in the agreement. No need to buy the cow when Farmer Brown signs a contract with you for all the milk. As for other companies, that could happen in the very near term but once we sign a locked up supply agreement with PPG then Argex is worthless to anyone else. Besides, I believe that the people who started Argex are in it for the long term. They're not going to sell out for peanuts now when the valuation will multiply many times in the years ahead as the production ramps up.

It's worth keeping in mind that the CTL process is available for license to other companies. Anyone with their own titanium property who wants to use the CTL process can just license it - they don't have to buy Argex for then technology.

As far as Argex being "one of the major players on the titanium market" as described in one post here, even at full production in 5 - 10 years time Argex will only account for 3% of the world's supply of TiO2 which makes us pretty small potatos. (That info is in the corporate March presentation on the Argex web site)