TSX:LSG.DB - Post by User
Post by
digger144on Aug 18, 2010 7:51pm
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Post# 17363347
Buying Precious Time....
Buying Precious Time....
Really nice to see the Management Team at Lake Shore looking after the minority shareholders, namely, us, the "little guy and gal".
I have alway's been very confident that they would and the latest share issue demonstrates that they have and will look after our best interests and of course....theirs!
They are buying precious time and are cutting the cord with Hochschild....well...sort to speak!
The standstill agreement that expires on November 22, 2010 will not be extended in anyway, shape or form. Hochschild will remain the major shareholder of the company and will have to go to the open market if they want to increase their holdings of LSG...Fantastic! Buy as much as you want but you will have to do it on the open market....Good Luck!
I have mentioned this before....the major market players do this for a living and no one is going to pull one over on them! I am sure that the major players put pressure on Makuch to make this latest deal and not work directly with Hochschild as in the past. In otherwords, there will be an even playing field for all players alike. I believe that this latest move will be a market mover and the stock price should push through the $4.00 mark tomorrow. Hochschild can still buy up to 40% of the available stock but now it will not be under the radar but under completely different circumstances. Some might consider the issue price of $3.50 a deal but as in the real world you must look after the players that are going to promote your stock and at the sametime work together to move this baby up in the future....incentive would be a better word to describe this latest deal. It will work and we will begin to move upward!
Quick math...I have Hochschild at a 35.9% ownership on a fully diluted basis of 365 million shares...their ownership is 131 million shares. I believe the new issue will be fully subscribed and the over-allotment will be picked up leading to the issue of an additional 24,725,000 shares. New fully diluted figure would be 390 million shares....131 million shares of a total of 390 million would be 33.58 % ownership. Just enough to keep the "wolves at bay" for any possible takeover bid. It takes 66 2/3 % to be voted to approve a bid. The management team is doing the bare minimum to keep Hochschild and the Wolves at bay. I think this is very fair and demonstrates to all investors that they appreciate what Hochschild has done for the Company and will give them the best opportunity to build their position of LSG back up and to whatever level they choose to...but...on the open market! This is very, very positive and will remove a huge overhang in the market place!
The standstill agreement expires on November 22, 2010 but as alway's the market moves well in advance of the actual day of the event.
Man...I love this play!
Digger144
P.S. Now that they have bought precious time....watch where this baby is going to go!