RE:RE:Tx, Novo to take over KL one day?TXRogers wrote: GoNovo2014 wrote: Hi Tx, I sort of remembered that you had speculated back in the fall of 2017 there is a likelihood of Novo growing so big one day that it will actually absorb KL and become one entity. Do you still feel the same now?
GoNovo 2014
No. The only way that was feasible was via the Market-Cap growth profile.
Back in October 2017, KL was trading at about $17 CAN. NVO at $8 CAN The growth profile of the NVO market cap was swiftly moving towards an intersection with that of KL. This was the period when the "conglomerate hosted nugget" story was looking the most promising.
By May 2018, NVO share prices had declined to the $6 range, and KL had ascended to about $24. After this point, the two market caps separated significantly. KL continued upwards and NVO continued downwards. Very tough period for all NVO shareholders. And it blew up the thesis of any chance of NVO surpassing KL.
It's July 2020. Novo has not proven out their business yet. It's not to suggest that this will continue much longer, but there is no denying that the last couple of years have been trying.
I remain bullish on NVO as most readers of this site well know. But NVO's trajectory and time lines have significantly changed from 3 yrs ago. In many aspects (new acquistions, dissolution of JVs, new partnerships, the Directorship of the company, etc.).
Tx
You mighta given a few people a heart attack with that one Tx. Ceoers mostly.
Youre a gentleman. I will give you that.
H