PINL:HLOSF - Post by User
Post by
The300on Dec 14, 2010 2:13pm
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Post# 17844722
Takeout Candidate
Takeout CandidateWith the consolidation that is going on in the mining space, Halo would be a prime takeover candidate. The most obvious suitor in this situation would be Hudbay.
Hudbay has gone on record stating that they want to ramp up zinc production. We also know that their current feed stockpile is dwindling, and other potential feed is still a few years from coming online. (eg. VMS Ventures)
The most logical and cost effective way to make their plans come to fruition would be to use Halo's Sherridon property for easily accessible feed (open pit).
I would have to imagine that a takeover offer is a real possibility. If not, at the very least I would have to imagine that Hudbay has had this conversation with Halo management already. As it stands now, Hudbay has the option, if fully exercised, to own 67.5% of the 1.1 sq. km joint venture, which leaves approx. 199 sq. km open to negotiation.
Hudbay has already incurred the hard costs of building the plants in the area (approx. 60km from Sherridon), so why re-invent the wheel when the feed is nearby a la Halo.
The stock continues to be very thin on the ask as most current shareholders are well aware of the potential here, especially with Hudbay now in the forefront. It won't take much to move this stock at this point. $20,000 worth of buying pretty much takes us up to $.70 (barring any new sell orders).
I have been watching level II and I still get the distinct feeling that the ask right now are artificial (put there by someone/organization) to 1. keep an orderly market 2. keep the stock from gapping up.
Why do I think this? The level II is almost too orderly. Earlier today there were very small amounts on the ask, with 1 seller at each position. Then a little while later, same asks, but with 2 sellers at each position, and all with relatively small positions.
Once the private placement closes we will have a better idea of where we are headed.
Holding long and with confidence.
As always, the above is my humble opinion.
The 300 (Molon Lave)