7936567 Canada Inc SWYDF

RE:OILTAR-Who are you working for?

[shambano1]

hey we all act in our self-interest on these forums, that's the nature of opinions.

is a takeover of stornaway a possiblity?

and if so, what are the chances of success?

assumptions:
1-peak diamond production is here or soon to be here.
2-world demand for diamonds and other precious stones are on the rise again
3-SWY is operational but has some growing pains that have prevented them from achieving their planned grade projections but things are iomproving.
4-underground development is on schedule
5-prices from 3 sales so far have been good but lower quality diamonds were not sold for a few explainable reasons, and this to will improve throughout the year.
6-low debt levels, good management, mine under budget, etc., etc.

so is SWY dismond a good candidate for a takeover?

well if the mine and sales keep improving as the year progresses then I think they are an attractive target just on economics alone, but if they consolidate under a canadian diamonds banner of companies then that might make even more sense, high quality bloodless diamonds.

Im pretty sure the funds that own large chunks of equity and debt won't turn down a decent offer and profit.  I'm not 100% sure but I beleive they are into SWY around the 0.80 -0.90 cent range are they not?

so if someone offers you 1.50  i would thing they would snap at the opportunity to cash out.

my guess for a takeover is 50/50 today just based on what I have outlined.

dyodd, as some of my information has not been substaniated