SciQuest SQI

Valued at $1.32

[tofurkey]

NR says the offer values SQI at $1.32. So far, the market not agreeing. I put a limit order in at $1.35, but am willing to hold on to my shares if we don't get there. I still like the SQI portfolio and the newco will have lots of good targets to drill over the next while. Also confident in Turner and willing to see if he can do it again.

[zzzman]

I like the part in the agreement where it says that New Gold has the right to match any other offers.  I think that there will be new offers.  We still have the results pending on 3T's and the Yukon. 

[redbad]

At current prices Capoose and davidson are being bought/valuated at1 Cad/share. So the market values Yukon, 3T and 15 million cash at 0,13 cent/share. There are Yukon-players which are more expensive...

[zzzman]

The new company, McIntyre, New Gold will own 9.9% based on paying $3.5 million cash for the shares valued at .78.It also says that the new compay will have $15 million in cash for exploration development.  Plus the deal is also based on the current value of New Gold.  I took the  year high on new gold and on a 25,000 current position of SQI, it worked out to over $6,000 more.

[GlobalJoe]

Since the each share of SQI is really only 1/3 a share of McIntyre the market is valuing the Yukon, 3T and $15M at 0.30/share. 0.30 * 3. The cash alone is 0.33 per share of McIntyre if they end up with the 45M out (15M/45M). So no value for the projects themselves. Is this analysis correct?

[zzzman]

If you are looking at this as a short term deal, then my advice is to sell.  There are so many variables in the market right now that I am afraid to buy green bananas.  If you have balls, hang in.

[casey13]

In my opinion there is now a significantly less amount of risk in holding SQI today than there was last week. From here on out we are effectively a mid cap gold producer with a small Yukon newco on the side. Newgold is already considerably undervalued and to me represents good value. Unless SQI gets a considerable premium which is very unlikely in this market I will just hold my shares.JMHO

[zzzman]

If you read the full announcement on the website of either New Gold or Silver Quest, you will find that there were a number of independent valuations done and they signed off on the deal (the Court would require that before it would approve the deal).  The other point is (some of you may have more experience than I) but how many juniors have you seen start out with a value of .78 and 15