Post by
JoeStockIQ on Apr 02, 2024 5:11pm
Dreamer’s Buy-Out Debate
As we have always stated, Taseko is not setup for an easy acquisition. Management, including BOD members, holds an extremely high percentage of outstanding shares. This group has no desire to be taken over by a major producer in the field. The very nice recent run up in share price is most likely due to increased copper prices in general, along with some institutional investors realizing Taseko shares have been undervalued relative to their peers. Quite obviously, the ongoing Florence story is also a big factor. That said, and simply to have some fun with the dream of a beneficial acquisition event, what do we suppose it would take to put some real pressure on the BOD to actually consider such an occurrence? Well, first and foremost, you again have to begin with the notion they don't want it to happen. Full stop. That, of course, gives rise to the theory that the initial "number" to be offered would have to be an eye popper. So, what is that eyebrow shifting number? Our best estimation would be in the $5.50 US region. Now, before those of you that chime in with the, "That ain't no eye popper" response, we say to you that 125% above current share price after its recent run is indeed a qualified brow moving number as the overwhelming percentage of non-insider shareholders would jump at the offer to quickly more than double their investment...after the 45% move the stock has recently made. So, in this "dream only" scenario, what would the BOD do in that setting? We're sure you'd properly guess that our belief is that they would balk at the offer. The really interesting thought to ponder in this dream is how everyone else reacts that controls a good chunk of shares, I.e,, institutional investors et al. How much pressure would they exert on the board? How would the board and management react to them and us regular shareholders? What kind of PR measures are exerted by both sides? That type of stuff. In the end, if copper prices remain solidly north of $4 US, we think it would take over $6 US to really move the needle.
Whatever gang, again, we're only dreaming here to have some fun. But, we remain steadfast in the thought that the BOD has no desire to be acquired.
Comment by
Johnsay on Apr 02, 2024 9:48pm
That is what I thought until Copper Mountain got bought out at 50 cents to the dollar. Insiders always get a great deal no matter who owns the mine.
Comment by
JoeStockIQ on Apr 29, 2024 3:56pm
Wow, excuse us, up 89% YTD. January 22, 2024 share price close? $1.28 US. Looks like another strong close for the day, currently sitting at $2.66. More than a double since that late January close. Impressive indeed.
Comment by
JCSunsfan on Apr 29, 2024 8:55pm
BB said they don't usually announce production number except in early January just because it takes longer to get end of the year numbers out in Q1. So nothing to be worried about per BB. "a good quarter"
Comment by
Gmcdonagh89 on Apr 03, 2024 7:02pm
Buyouts like the one you just described is what ruined mining as an investment for the last 20 years...hopefully mining companies have learned what oil and gas have done this cycle...keep m&A to a minimum and just buy their own shares ...or even better pay some damn meaningful dividends