Acquisition? What goes on behind closed doors?I continue to wonder about the thought process that must go on in the board rooms of potential acquirers of ML.
First ,what would be their timing? The shares are certainly cheap enough such that a 60% premium could be offered around $12 and certainly look attractive relative to the trend, and one suspects be a good bargin for the buyer of the company. Are suitors waiting to make sure the production ramp up goes as planned? That must be it, though this is not a particularly difficult mine as I have heard it expressed here.
Do potential buyers not have the currency in their own stock price to do an asquistion sufficently favorable to themselves to make a move. After all, if their stock is going down faster than ML's then a buy gets more expensive in a flat to declining base metal world...Maybe that is the issue.
Do buyers now know that management won't recommed a buy out for less than $20; does that deter them? Would a hostile buy out create such complications and hostilities that personnel and experise would be lost in the eventual transfer of ownership..
Well, maybe all the above are true. Feels to me then that it'll be a year before we get up to reasonable valuation, $15, when at such time substantial cash flow begins to be accumulated.
Copper is holding up better than many another thing...
https://stockcharts.com/h-sc/ui?s=$COPPER&p=D&yr=2&mn=8&dy=0&id=p11064261078&a=29001341&listNum=1
I missed the fact that ML had made new 52 week lows at $7.10, save the low made almost a year ago at $4.10.
Strong volume support begins at $6 - a price which seems almost laughable, but then so did $7.45 just three months ago - a reminder of how volitile and how quick is the two way street of ML's trading history.
https://stockcharts.com/h-sc/ui?s=ml.to&p=D&yr=1&mn=7&dy=0&id=p00510700341&a=69177202&listNum=1