GREY:SWYDF - Post by User
Post by
shambano1on Mar 24, 2017 3:57pm
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Post# 26028230
market doesnt believe SWY /DDC merger
market doesnt believe SWY /DDC mergerbut this doesn't mean it won't or can't happen, it just means that speculators don't want to risk lots oc cash or and or credit on it occuring.
possible reasons for merger
1-DDC needs a new CEO. diamond business is a small community. Matt might have the credentials (I'm not sure) but he did complete a major minging proejct ahead of schedule and under budget, which should be worth some browny points.
2-SWY is just starting it's mining journey, so they will have lots of diamonds to sell over the next 12-20 years, and this increase in produciton will go well with DDC aging mines and declining produciton.
3-DDC was undervalued but has since risen to a better valuaiton because of the offer to buy them. Now SWY is still under-valued based on my own projections for CF and earnings and possible dividends in 2-3 years.
so I think a merger is good, but again I'm just a lonely poor SWY shareholder.
either way I'm going to stay until I see a much higher valuation for my SWY shares.
GLTA