GREY:HRIVF - Post by User
Post by
NaturalCurrencyon Feb 03, 2011 10:55pm
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Post# 18073654
Big Picture
Big PictureAs somebody who has been holding a position in HRG since Oct 2008, I am willing to wait to realise the true value of the investment - IPO or no IPO.
I know it is somewhat bewildering that HRG is not moving up despite the large Nord Gold valuation figures being thrown around. Does it mean the IPO will fail? I am not so sure.
Let us take a step back and look at the big picture. An IPO in the very exciting phase of a historic gold bull market (which might not end in the collpase of gold price, but might eventually take down the fiat system of today instead), being managed by some of the 'reputed' names in the industry points towards something else. Although I have not worked in investment banking, but I think the valuation is also based on the 'feelers' they get from the investment community, and there is a detailed book building process.
In the end, I would be happy (not for Severstal, but for us longs) if the IPO succeeds, and a failure would only mean some more wait from HRG perspective.
Patient and long.