Karora Resources Inc KRRGF

Seriously undervalued

[MaterialsMan]

WGX has a great balance sheet with all the right boxes checked. Unfortunately I don't think KRRs SP will react to any great extent if the breakout continues, unless the SP of WGX begins to respond favorably.
The ASX gold stocks have not been able as of yet to respond favorably  to Friday's action.
I for one will be keeping a close eye on how gold opens Sunday evening and subsequently, how WGX.AX responds. Canadian investors will be shut out by Queen Victoria on Monday, but there will be trading in the U.S.
Even with Westgold being a real bargain, I'll be shocked if it doesn't begin to respond down under if the breakout continues.
The trading of Westgold in the U.S. is pathetic. Westgold can't even get a bid here.

[schmidilein2713]

they will do everything to keep the shareprice low- because they have to pay/offer a 2.52 multiple for Karora shares. Each cent higher shareprice means more money to pay. 

[MaterialsMan]

I would beg to differ. If if was a cash deal, you would be absolutely correct. But it's not. Two and half shares are two and a half shares regardless of the share price. The cash portion has been pre determined. It stays the same no matter what. Pretty sure this is correct.

[MVargas]

Yes MM, you are correct.  There is no reason/incentive to supress WGX's share price.  On the contrary the higher the price of WGX's share price when the merger is finalized, the more valuable those shares will be for KRR shareholders when their shares are exchanged for WGX shares.  That makes the offer more attractive and increases the liklihood that it will be accepted

[Rainman01]

Both companies are heavily shorted. Westgold is number 6 on the Australian market for being shorted right now. My theory is to drive retail out and keep the price lower for institutional investors to buy more at discount prices. KRR share price should be higher but both companies did some tweaking to make the merger happen. Looking for input on what you think will happen after merger. I am locked

[grampax5]

I'm hoping to see $3. to $3.50 within 6 months after the merger

[mjh9413]

The recent probems with significantly increasing AISC at Westgold is a clear cause for concern despite them putting cause down to rain and mill rproblems. Latter also affected their gold output but last qtr shud see them do over 210k FTM with all these problems out of way. Boy, if they can get even close to the former AISC levels then you're right this is undervalued and, since they are