GREY:DRGDF - Post by User
Comment by
contrainvestoron Jan 24, 2008 5:02pm
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Post# 14257473
RE: Rumour Auingot
RE: Rumour AuingotI agree with all your points. I think the reason you have seen action pick-up in the last few trading sessions is that the majors are looking at taking out this deposit sooner than previously thought. Those drill results last week showed that there is strong potential to increase the resource well beyond 10 million ounces, and especially at today's gold prices. They probably figure it is better to make the move today based on what is already known (since it is undervalued), then wait for the company to continue to expand the resource (which appears likely). This company will not be taken out for anything less than $30. Even if an offer were to come in today at $25, that would only be the opening bid, and it would be easy to find other buyers. The volume has really picked up this week, which suggests to me that you may be seeing hedge funds positioning themselves for a take-out. I'm sure we will know soon enough.