TSX:SUE.WT - Post by User
Comment by
Corcovadoon Oct 25, 2007 2:04pm
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Post# 13689161
RE: Interesting
RE: Interestinghenke73 Quote:
The issue here is risk. CMM is at a low, but that is because of the uncertainty surrounding the SUE (lack of?) deal. But for a speculator at this stage CMM is a great buy, because it will go up if
(i) CMM walks away
(ii) CMM takes control of SUE
However, putting your money in SUE is much riskier. If (i) happens,
SUE will drop below the level when CMM announced its offer. So you'd
easily loose 50% on your investment. However, if (ii) occurs, of course the SUE shares (which become CMM shares) will go up.
This game is all about risk/reward, and that's why buying CMM now is a pretty sweet deal. Also keep in mind that the increase in POG (about $100) provides CMM with an extra $10 million a year (and they were
profitable already!). This bonus has not even been factored in the SP. Based on this, CMM is cheap, and SUE is expensive...
This sums it up. There are very few options and we have an opportunity for everyone to put the past behind us, shake hands, and make a lot of money....