GREY:MLKKF - Post by User
Comment by
jims101on Feb 26, 2008 8:55pm
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Post# 14550639
dadoc1, agree with you
dadoc1, agree with you....but I will say that if ML management could happen on an acquisition with as low capital costs, profitability potential and life of reserves as their current deposit, then the market might actualy reward ML's share price..after an initial fall. Taking ones profit and investing it in something inferior to the asset represented by ones own shares is and has been my opinion unrewarding to current shareholders...
Now, making acquisitions might also be defensive in terms of warding off take over bids...If ML gets eaten up by somebody much bigger then itself, then it becomes part of something inferior.
Buy back shares with the incoming cash flow, ramp up the price some and get taken over for $30-35...Be fine with me... A triple is about the best I think we'll see in two years. The sooner we get there the better, and the acquisition route, I doubt is the way it will happen.
Some here want to be married to this story for years to come, figuring the ML management can successfully parlay its unique prospective success at Mineral Park into a bigger richer portfolio that will result in its continuing to be a superior investment for a longer period. They'll most likely get their chance...I'd rather have 70% in two years of what might be the reward in five..