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Callinan Royalties Corporation CCNMF



GREY:CCNMF - Post by User

Comment by btshooteron Jan 19, 2012 8:42am
401 Views
Post# 19420757

RE: RE: RE: RE: share value

RE: RE: RE: RE: share value

Hey Olliana;  that is a positive thought, however, keep in mind that some royalty companies trade @ 40 times earnings, not 7 as CAA is currently. Recently under Rollands stewardship CAA has traded as low as 5 times earnings.

If I was managing a Royalty Company trading @ 40 times earnings, I would buy a position in CAA out of the market then make a bid @ 10 times the company earnings, say $4.00 cash, shareholders of the target company after suffering so long with poor market evaluations, would tender their stock immediately.

What a win for my shareholders, we buy at 10 times earnings and get evaluations in the market of 40 times, no brainer, $25 million to the bottom line instantly plus upside with War Baby and the 81 other claims covered under the agreement with HBM.

We like being positive, however, the above looks more the case than what you are suggesting.

Good luck, bt.

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