Trust is the issue for CANFormer CAN shareholder - will buy back lower though - waiting for the outcome October 28, small hedge bet on SOC now.
I would like to add a few thoughts:
1) No one wins in an ongoing dispute - its best to settle things and move the project along.
2) SOC has an option to acquire "something" - and the mere idea has knocked almost a dollar off CAN's stock price while SOC is holding pretty steady with a big gain. The market says SOC is right and some CAN shareholders knew it. On the other hand, SOC is trading very lightly and not moving down significantly - no big sell-off. CAN SAYS TRUST ME?
3) An Analyst is being quoted as saying CAN is right and the max they will offer is 2 million. If an Analyst says anything in this situation, they are usually just glorified touts and you should do the opposite. Analysts said to buy Nortel too at $100, $ 67, a strong buy at $ 23 and a sell rating was given at $ 3.50. Analyst's are paid to say whatever they say - think of them as George Costanza's -DO THE OPPOSITE.
4) $ 50 million suggested as a SOC buyout by CAN - only a stockhouse poster would post this - that's crap. Ore in the ground with a resourde is worth 10 cents on the dollar. $ 50 million? More like $ 5 million in real buyout terms EVEN IF THAT AMOUNT WAS RIGHT, but if the Chinese are invovled, they will way how much it will cost to bribe the government vs. how much it will cost to pay-off SOC.
Unless SOC will be in the bidding war to bribe government too. I don't think they are from the sound of it. I don't know of any bribes at this point, but be sure there will be if an arbitrator is invovled and Chinese companies are involved.
5) there have been bogus and misleading arguments about they can't acquire this because they aren't citizens, etc. There are ways around that in every country, incorporating a Tanzanian subsidiary for instance, as that corporate entity is usually considered a Tanzanian citizen.
6) CAN cannot build a mine around SOC's property. If SOC's legitimate option is cancelled, investment from other companies will dry up. The government needs to be careful in not taking sides.
7) Even the government has recognized the prorpty owner's rights. SOC may be out in the cold if the property owner does a deal with CAN and SOC is left to sue the property owner.
8) SOC should run higher to $ 1 and CAN will drop to under $ 2.00 and recover by January as the honeymoon is over there. The trust is gone so there will always be sellers.