RE:RE:FYIMikeySwoosh wrote: Well, for anyone that is cynical about analysts, it would seem that Mr. Quast either needs to revisit math class or he's trying to create and sell some sort of arbitrage scheme. Given his $26 target price for AGI (and $.40 target for AR), and the 0.0185 share ratio of the proposed transaction, he's ascribing a (.08) valuation to the Spinco. Seems logical enough. Anyway, I'm still trying to figure out what to do with my 40K shares of AR. There's likely an arbitrage play somewhere here. If the POG continues to rise, the value of the Spinco does as well, so "in theory" the price of AR should outperform the price of AGI in a rising gold price environment. Perhaps the opposite is true as well.
the math is easy it all depends on how much value you give the spinco????????
at todays closing price of Alamos with the ratio we are getting .0185 shares our AR shares are worth
$.3675 + spinco
so if you value spinco at $.03 then if you bought AR shares at $.38 your up and extra $.0175 per share if the deal closed today and you sold your Alamos and spinco for the above prices.