GREY:PGDIF - Post by User
Comment by
greex27on Oct 06, 2016 9:04pm
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Post# 25320470
RE:RE:JV or Buyout?
RE:RE:JV or Buyout?JV would be best...Many have done very well quick flipping stocks but if you take the long view of Chidliak and investing, having the opportunity to extract valuable resources over the next 20 years will provide you with a much greater return than a quick hit. The two variables would be whether or not you could reinvest the quick hit for another quick hit or a company with an equal or better future OR if PGD decides to reinvest the income from Chidliak in to other "exploration" instead of paying out the income to shareholders.
The trouble with the buyout today is that's it's hard for the purchaser to pay enough for the unknown, aside from Diamonds I suspect we have other resources in play that will also become very valuable. With a JV we don't have to extract every nickel and we get to participate in the future value. I see this as the most likely and beneficial scenario...
We'll see