GREY:CLGRF - Post by User
Post by
radar03on Jan 31, 2012 9:39pm
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Post# 19472129
The dominant factor is the SP
The dominant factor is the SP In my observations whenever a company (CRJ) absorbs another company (ST Eugene in this case) there is a defined liquidation in the Aquirer prior to and after the deal is/has completed. According to the latest press release( see January 18th) that this deal closes on or about January 31. Some holders of CRJ stock just don't want to wait for the process and see it as dead money for a while, or they just don't see the value as in the case with Kinross absorbing Red Back mining. When the aquired company receives shares of the parent it is'nt unusual for the new shares to hit the market and the money is reaped for the deal made. This obviously causes a very long sideways to down motion in the SP and external factors such as the rise in Gold have less effect than the previous mentioned.
When Cliff's Natural Resources bought out FWR Cliff's shares (post ) fell because those that did not shares of another but cash instead sold. However Cliff's SP recovered nicely after the fact to the shagrin of those who had sold their newly aquired shares.
I hold CRJ because I hope technically it will be able to break out of its base soon. Please forgive me if this has already benn discussed or if you don't agree, strickly my opinion.
Radar