Evaluations.. Sorry I posted this the other day on Spider and after reading some of the posts here, thought it might make sense to copy it here. I own both, so looking at the price of both right now, can't take it too seriously. Right now everythign is at a standstill, things are going to fulxtuate and the first one to blink may lose. Some food for thought......what will cause these stocks to rise......
1. Agreement from Ont gov't and Natives will force EVERY company stock to rise, and vise versa. This is manditory and needed for all parties regardless of what side you are on. This will start the development
process and for anyone interested in this play will signal that the red tape etc will be easily completed. Stocks will arbitrarily rise on this news, including anyone who has a play in that area.
2. Independently, KWG will rise also on the above news, maybe more than spider and the others. Thiswould be due to the railway.
3. This back and forth jockeying will only take the stock to a certain level. i.e. 20 -3maybe 30cents. Before A.enough shareholders get frustrated and sell out, or B. one company splits and jumps on with Cliffs
4. Reading the posts, the only way to realize the $17 share price that some say it is worth is long term, with a merger to own 60% of it, and development begins or another major comes in to buy it out
OR
staying a minority partner in it (but this won't be realized until many, many years down the road when development is at full peak and infrasturcture is completed by the major (tag along scenario)
Let's be honest, everyone is going to have their own opinion on this. Some more passionate than others. Short term this stock isn't going to skyrocket, there are too many EXTERNAL forces that have to be completed first. Is it worth $17 or more, in all honesty probably. And living in Ontario I would hope so. The problem everyone is debating is what is the best move to get there in the shortest possible time frame.
Longterm and with the least amount of risk - it may be to standalone as the minority
Shortterm and with varying risk - merge and play the next hand
For the shareholders, it becomes what you can live with.
Good luck to all, whatever your motives.