GREY:MAAFF - Post by User
Post by
Brainwave1on Nov 09, 2010 12:53pm
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Post# 17681090
End game
End gameIs
.30 the new floor? If MAG is now loaded up with cash to last into early 2012 (if need be) and confidence starts to weigh on the stock, then that level will be breached, whether it is below intrinsic value or not. The most convincing (and best case) reasoning so far is that they have bought room to indicate to Complant they have other options.
It would be interesting to know who the 3rd party interest is. But, those parties would presumably be reluctant to enter a deal in the knowledge that they are being played themselves by MAG to prove to China that they need to move. Who is going to waste their time on DD otherwise? The strength of China's position is that they hold the cost savings of the engineering study and could, presumably, match competing offers if it came to that. At some point MAG would need to call their bluff, otherwise the opportunity cost of being left in limbo puts them in a slow bleed position, or what the company has been through for the past 18 months.
It finally does look like some kind of end game is play out and the best hope is that Rich Morrow and co know how to close the deal. Or heck, couldn't they bring in some outside heavy hitter to help close it for them? It'd pay for itself.