GREY:HRIVF - Post by User
Post by
Honkeybillon Apr 08, 2009 4:22pm
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Post# 15905911
I agree, and I'm smart
I agree, and I'm smart I agree.........the guys at Sprott aren't dummies.........I think they're way underwater with this baby and they would like to make an exit soon..........but they looked at the cash flow and realized it can service and reduce the debt over the next 12 months.......they also realize that the POG will stay where it is or move up......so they put a value on what it's going to be worth 12 months from now and use that number to get the present value (adjusted to risk).
12 months from now..........if POG just stays the same......the debt should be reduced by around one-third (and that's conservative in my estimation and probably in theirs too). Production issues should be closer to being fixed.........a reasonable share price?.....a buck.........buck thirty......
So if they think a buck thirty is reasonable in 12 months.............what's todays price? it sure as hell isn't 25 or 30 cents, which is probably what Severstaal offered.
This is one where your going to have to be patient. Severstal wants to buy the cow with it's own milk and Sprott's ok with it cause every month the cow gets more valuable.