RE: From the SLW boardThe point is not if SLW is undervalued (it is!).
The point is SST is even more undervalued than SLW, much more.
Want to have an idea?
Without SST acquisition, SLW P/CF(2009E) = 14.
SST at 1.5 C$ is valued at P/CF(2009E) = 4.
This is more than 3 times lower then SLW.
And your SST shares will be converted in SLW shares that after the SST acquisition, will be valued by the market at P/CF(2009E) = 11.8
Have a look at the SLW presentation slides of this deal:
https://silverwheaton.com/userfiles/file/2009-03-10-Project-Angie-FINAL.pdf
SST is by far the cheapest precious metals royalty company out there.
And our management is agreeing to give away the company at this ridiculus price.
This is a company that do not desperatly need money to advance a mine. SST can just sit and wait for the cash flowing each month. And if the stock price keep staying depressed, they could happily wellcome the situation and start buying back as many shares as cash flow allows (and this would give even greater shareholders returns for the ones who keep the shares).