OTCPK:RDIAF - Post by User
Comment by
knicksmanon Jan 06, 2015 9:55pm
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Post# 23292501
RE:Rockwell Diamonds acquiring assets for growth
RE:Rockwell Diamonds acquiring assets for growthI'm really interested to see what details are going to be given on tomorrow's conference call. With subscale operations, the company is barely profitable. However, the announced acquisition could change everything...and give the scale (and profitability) the company badly needs.
The company still has to come up with $12 million. I would think a good chunk of it, if not all, is going to come from equity issuance. Therefore, I would expect some dilution, however, at this point, I don't think the company has much of a choice...and even at 25 cents per share, the acquisition should be significantly accretive.
I'm a buyer...even before the call. Obviously that could change...but I don't think it will. Management has done "decently" well given what it's had to work with. Plus, a lower Rand and significantly lower oil costs should be HUGE.