GREY:MAAFF - Post by User
Post by
CapeBretonon Mar 31, 2011 8:43am
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Post# 18365696
prediction
prediction
I think Rich will be trying to sell some parts of Mag to focus on the potash asset. I would not be surprised of an announcement in April or May comes up saying Magforestries is sold. He will be divesting some non-essential assets in my opinion. I believe he is travelling to Africa next weekand I wouldnt be surprised if that is at the top of his list.
I still wonder what this "industrial group" could be? I am thinking until a full deal is reached Mag will not be releasing any details. While they would like to wait until certain warrants expire in December I dont think they will turn down an earlier deal. So no annoucements until the big one, and that will not help the sp.
While I am happy BMO has renewed interest with warrants at 50 cents, I dont know how much of an effect on the value of the company can be acheived/inferred. This is like a lottery for BMO, they may spend $100,000 in labor trying to mitigate a deal, and if they do at anything above 50 cents they stand to make a million or two, if not all they lose is some labor costs.
Good news with Mag is the rest of the market is due for a bit of a correction, in whichMag will not participate, we will sit between 15-18 cents if the financials are "safe", until a finance deal or buy-out is announced.
I dont know the exact numbers, but I am reassured that most of management has a fair number of shares so they have a vested interest to get some money for their investments.
just my Thursday morning thoughts...