GREY:MAAFF - Post by User
Post by
Ethanbrodieon Mar 28, 2011 9:44am
456 Views
Post# 18349055
the low down
the low downSo, buyout or no buyout, all that matters is how much money you can make with the properties, taking into consideration of the risk profile. If there was a buyout offer, the offer will be much greater than 200 mil. (in my view) you have to consider how much companies could make which is in the billions, and large companies would want essentially full control. We all know this company is trading at crazy cheap ratio's to the potential. If someone will buy them out, it is a different story. I think large industrial groups would be interested. The reason we have not seen them come into light is because they don't want to do a jv. It does not fit their profile. for a large institution, a 200 mil investment is peanuts compared to the potential they will have, also, all the other juniors are much more expensive than us. that is why I think there has been a large interest in a buyout compared with a jv, which management would like to have.