RE:Huge WinnerI agree Large - I think this is a safe level to buy that is supported by fundamentals. The blue sky is definitely there but all I was trying to convince people is not to buy at 8 bucks and then wait for it to recover for years if it drifts back down to 3. But with that said, based upon the wanted debt:equity ratio of 3:1 the market cap should be 333M or around 12 bucks a share (around the IPO price) which is still a significant discount to what the NPV based share price is (something like 40+ per share) which gives those new investors at 12 significant upside too. Just be careful but I think this WPX market cap level is safe resistence to the downside, as trust me, WPX has been testing this level for a long time (much to my prolonged pain).
FYI MDJB - I have been posting for many years - but my profile got deleted in a nasty proxy battle over FCU in sept 2015. So yeah ... I have been here listening to your overly optomistic posts for years. I think my posts are optomistic about KRN but still grounded in reality which hopefully will help people not lose their retirement savings!!
largeinvest wrote: and the bought deal isn't even necessary.. They could have easily done all debt. The only reason they are going to the market is to "grease the brokers" so that they will "initiate coverage" and analyst reports. This is why the bought deal isn't going to be done at a discount, if anything its at ap premium like $5 a share. A full financed and backstopped mine with a 20 year offtake, the highest potash grade in the industry and the lowest costs. We have a huge winner on our hands.
The last deal they did was at $8.15 a share. Do you think they want to do something dumb like $2 bought deal and below the valuation of WPX? Of course not. I view $3 as a very safe level to invest and have doubled my holders today..