What is Next?... First of all, I have been in this play since March, 2010...yes...first significant purchase was under $1.00...I have done, very, very well!
I had the story right...right from the beginning...the only "thing" that messed up the ending was the "smash" that has recently taken place...victims of circumstance!
However, having said that....there were so many opportunities to take advantage of the situation and I hope that some of you did...those that did not have the courage and conviction in the story to press that "buy" button, I hope that you will not make the same mistake in the future...this has been an amazing ride! I recall that our "cyber" friend Alchemist7 loaded up in the $2.20 to $2.40 range...nice call my friend!
So...what is next?
My advice....hold on tight...this thing is not over! We have nothing to lose to wait it out for a couple of weeks! This is a very rare...all cash deal...we will get $3.30 no matter what!
Please...do not sell Management short...not quite yet....I believe that they have a most wonderful game plan to get us a better deal!
I would like to give you an example that all may understand what I mean. Let us use the Toronto & Vancouver Real Estate Markets for examples. The game plan in the last couple of years and it has been a very successful model over this time period....list the house below market value to gather attention and stand back as the action begins. It has happened over and over again....the bidders start to line up and the final outcome is a final sale price that brings in anywhere from $50,000.00 to $100,000.00 over the asking price, in some cases even more!
Anyone that has followed my posts knows full well that I expect a "bidding war" for this asset!
The action began today...this thing is far from over...this is the first move only and signals to the market that Trelawney Mining is truly up for sale...there is no going back now...any potential buyers now have it confirmed in black and white that resources that will be used to pursue a deal will not be in vain.
Yes...Iamgold has the upper hand which is an excellent strategy....but...they will have to pay up in the end....they already know that! They are prepared to pay more!
A couple of things to keep in mind....who was absent from the party in regards to the BNN Interview this morning @ Steve Letwin, President & CEO of Iam Gold?....the otherside...Greg Gibson, President & CEO of Trelawney. Another thing...the buying today....it should not of been so close to the offer price...anyone wanting to play the arbitrage trade using $3.30 would not pay $3.28....the buyers today are betting on an increased offer...the sellers are those that do not understand what is going on or do not care to wait for a "possible" outcome.
The arbitrage trade is simple....buying at a discount price in order to sell at a later date...in this case the end of June, 2012 when the deal is finalized. Letsgetready, mentioned in an earlier post and I agree with that individual that "they" are not buying to make 2 cents...holding on for two months for $.02...not going to happen!
Jennings Capital changed their target this morning from $4.00 to $4.25...for those that do not know...they have been in this play since the early days of the Cote Lake Deposit...they have a very broad understanding of the circumstances and know the story and the game very well!
I cannot state this enough...the Cote Lake Deposit along with the huge land package that the Management Team has put together is one heck of a prize...let the biddding begin!
Digger144
P.S. Again...please, do not sell...this is a cash deal...we will not be affected in anyway in regards to the gold price or the fluctuations of the buyers stock price....Very Nice!