Long Run Explor Ltd Ord WFREF

RE:RE:RE:RE:RE:Maybe capitulation day

[JohnJBond]

The chance of getting $4 or $5 or $6 per share is not out of line.

If someone at arms length were to buy this company for cash, they would not have been able to get it at those levels a few months ago, and realistically to get the board to recommend a deal, it would need to be in that range.   The board is very unlikely to recommend a $2 offer to shareholders, or even a $3 offer (unless mgmt sees an impending financial distress, and if there were the case, they would not have been buying last week!).     At $5 per share, that would be about C$1.7 billion.     Imagine you are a Malaysian company looking to buy gas assets for your future LNG facility, or a US major with the same idea for example , you could buy the whole thing, with the intention of selling off oil assets later, or trading them for additional gas assets in your area.    If you are a US firm looking to be opptunistic, the exchange rate discounts the price by 25%.

A merger is a different story altogether.