After reading this board with a great deal of enthusiasm in the last few day, I found myself making the following musings.
Assuming a present holding of 10,000 VIA shares. [This will work the same way no matter what your situation.]
This holding translates into:
4000 G shares @ $24.00 = $96,000
5000 NVIA @ $1.32 (Present value of Tradergod's favourite area play)
= $6600
Total Value: $96,000 + $6600 = $102,600
Present Equivalent Value of VIA Shares: $102,600 / 10 000 sh = $10.26/sh
My Argument:
NVIA is a BETTER area play even than AZM so $2.00/sh is not an unreasonable value.
Goldcorp shares could easily move to $25 as the market recognizes the value of Eleonore and as more drilling results come in.
These changes result in the following valuation:
4000 G Shares @ $25 = $100,000
5000 NVIA Shares @$2 = $10,000
Total Value: $110,000
Equivalent Present Value: $110,000 / 10 000 VIA shares = $11.00/sh
How you play this stock over the next few months will be determined by what you believe concerning this exploration area.
Clearly these values could DECREASE. If you believe they will, you will probably sell.
However, if you think these numbers are anything close to reasonable OR If you think these values may well increase, you will probably hold or increase your holdings.
Disclaimers:
1. Traders will trade.
2. Another important factor: The POG
3. I will leave it to your own musings what you think the effect of another bidder might mean.
Good luck, longs.
PIB