It is not NGN or merger that generates a gold bull marketNor makes CRK a good management company, a good runned gold company or a producing and profitable gold mine.
NGN and the merger is completed irrelevant, meaningless and stupid concerning all that. It makes absolutely no sense at all.
The only reason that NGN wants CRK and on the incredible cheap bottom of the gold market cycle lull, is CRK is an incredibly good gold company on its own, and the gold bull market is starting up again.
I have no idea what Luxor Capital Group, the primary shareholder of CRK, is thinking and doing. It certainly isn't to the benefit of CRK, CRK's price or the minority shareholders share stake in the company as it's merged into NGN.
But NGN doesn't make CRK a good gold company and doesn't make the gold bull market come back.
It is more like taking CRK private by drowning CRK in an holding company that wants to buy a stable of good emerging gold companies on the incredible cheap right now, with I guess majority shareholders in each company, like Luxor, don't think the gold bull is coming back. That drowns CRK in increasing consolidations of shares as each gold company on the cheap, is merged into NGN's stable of gold companies.
If the gold bull market is over, why does NGN want CRK and companies like it on the cheap?
The only reason the gold bubble is here and is the mark of the last 12 years or so, is the US led west is QE money printing to death, and eventually that printed up paper money is lent out to the real economy to try and stimulate the world economy back to life. That causes incredible inflation, which gold and precious metals and their stocks thrive on, because they can't be printed up and alchemied but hold their value and then rise nicely because paper money is devalued, plus bids on everything real, raising their prices, like gold, precious metals and their stocks.
NGN is completely worthless, meaningless and irrelevant in all of that, and a merger with it is like a kiss of death or going private, which Luxor said it wouldn’t do without a majority of the minority shareholders, agreeing to.
The FED said it is changing to an inflation policy, ie raising interest rates, which is the same thing. Because there is always a gap between interest rates and inflation higher or else the world economy stops ie stagnants and deflates even. Rising interest rates only hurt the world economy if inflation doesn't rise higher than it. That only happens when too high of an inflation has to be killed off like the FED chief Volcker did in 1980 when the inflation rate got to 14 of so percent.
Whenever the FED or talking heads say rising interest rates will kill off the world economy they are lying. The FED and central banks around the world are raising interest rates and inflation together. It is just a scare tactic to keep gold prices low, which when constantly rising tell everyone that QE money printing is counterfeiting like, and making a mess of a sound running world money system and world economy.