RE: RE: RE: special committee weighs the factsThat is correct.............the poison pill will prevent an unsolicited and predatory takeover such as the one just put forth by Luxor.
Should Luxor try to acquire shares by any means or in combo with any other party that boosts its holdings above the 20 % level, the poison pill will kick in.
In that situation, management have to offer all shareholders ,rights to buy common shares at a huge discount to the prevailing or offer price.
That action would have the effect of vastly increasing the total takeover costs to the point where the offer will be withdrawn.
Thats why its called a poison pill.....................Its surprising ( see commentaries by two posters ) just how little DD retail inverstors actually do.
Its not rocket science.
Now that we shall proceed directly to putting ourselves up for sale, here is a link that shows valuations of gold producers relative to the value of their ore.....
https://www.goldminerpulse.com/blogs/gold-explorer-producer-valuation-exceptions.php
Note that CRK's ore is worth approx $80 per ton and that the minimum valuation for producers is a market cap of $100 per oz of gold resource.
This would value CRK at about $525 million or about $1.60 per share.
Based on conservative cash flows in 2012, I estimated a valuation of about $500 million.
Analyst targets vary from $1 per share to $2.40 per share.
Hard book value exclusive of gold reserves/resources is above
.75 per share.
Value the 5.3 million at just $30 per oz, and the valuation becomes $1.25 per share.
In conclusion, nearly all valuation methods value CRK above $1 per share.