https://stockhouse.com/companies/bullboard?symbol=v.prb&postid=34842949
Was a great time for this as deal for PRB shareholders looking back now. Relative value and upside potential
In the past couple months most resource stocks have lost value.... ELD is down 50%
Probe is down nearly 50% from its high in April. They have increased their cash position to about $50 million
So if ELD was going to make a move, soon is the time to make an offer
If they offered 1 ELD for 4 PRB and .40/ prb share It would not be a terrible opening deal JMHO
That would equate to buying an ELD for $3.20
(4 x 1.20) less (4 x .4) = 3.20
This would dilute ELD about 38 to 40 Million shares or about 20% The cash portion would be equivilant to PRB,s cash position... ELD production would increase significantly approx 40% when the new Val- dOr mine is operational, and the majority of their production would be in Quebec.
The upside potential would also be there as ELD shareholders... I would est the ELD value would be in the $20 range within a year or 2 as the development of a new mine would bring in new shareholder/ institutional intrest.... JMHO
Even under this deal the upside from here for PRB shareholders is very, very good. I would bet ELD shareholders would think this is far too generous, just as PRB shareholders think this would be stealing PRB,s asset. Thats why I think my est is what may happen.