RE: marketThe market seems to be over reacting about the PP issuing shares to Hothschild at 53 cents. That deal was done before the big spike on market price late last week, so it was fair market price then. They cannot tear up the deal because the stock made a sudden move higher. The bottom line is that EXM had to pay for their share of the mine acquisition if they were going to accellerate the buyout. That meant issuing stock. They could have paid off the vendor in shares, but then he would have just dumped them in the market. By doing the deal to issue the shares to Hothschild, the shares are off the market and EXM has paid up on their 30% ownership. Its that simple. Too bad they could not wait one or two more days, but who knew the stock would liftoff so suddenly after that selloff last week?
The real news is that the JV partners have agreed to accellerate the purchase option. I do not think that is already discounted into the stock, but there are so many short term traders and tourists in this play, and they always dump on news. EXM could have announced they discovered the Hope diamond this morning and the stock would have sold off. The decision to go ahead and pay off an option early to complete the acquisition is a huge endorsement of the quality of that mine, and it will pay dividends for all shareholders very quickly.
If I had the cash lying around, I would be a buyer right now for as much of the cheap stock as I could get. In fact, Im going to look around my PF for something to sell so I can get a few more EXM. The market is full of clueless spec players folks, take advantage of their weakness.
cheers!
COACH247