RE:Chinese take-out of Continental Gold at $5.50/sh On the contrary , todays takeover of CNL is priced exactlly at what the market deems it to be worth. A willing buyer and a willing seller agree to a 23% premium , what could be fairer???
Further analysis shows that $1.4 Can billion being spent to buy 11.34 million ounces which is almost exactly $ 125 Can per ounce. Exactly in line with recent takeovers within the gold mining industry.
If we apply that $125 per ounce to PVG's 16.2 million ounces , we gat a value of $2.025 billion , or based on 185 million shares, or $ 10.94 Can per share.
Which suggests that at todays SP of $13.95, PVG is overvalued and potential buyers are not lined up at the door with their chequbooks unless and untill the SP corrects itself