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Atikwa Resources Inc. V.ATK

An oil and natural gas company


TSXV:ATK - Post by User

Post by investeur2on Sep 26, 2012 10:33am
368 Views
Post# 20415487

Bold Prediction

Bold Prediction

As we await the results of the future of the company it may be interesting to speculate on the outcome. My bold prediction is that the company will not be sold. Management has gone on record as stating that the share value is near 12 cents. The market is telling us that the value is somewhere near 3.5 to 4 cents. There have been no major buyers recently and, it follows, that no company is interested in acquiring shares. There might be a slight possibility that someone may want to put in a bid to buy the company but I would be surprised if the bid went over 1.5 times current trading price or about 6 cents. Management needs to maintain it's credibility with the Calgary crowd; selling at half their predicted value does not give credibility. That leaves two choices; sell some assets or raise some money through private placement.  This means that  the Manitoba property will be sold  because a rollback is needed prior to private placement and this leaves a long period of inactivity and no guarantees on acceptability of rollback. Hence, my bold prediction is that Manitoba property will be sold but, now at fire sale price because the company has backed itself into a corner; that is why we see today's stock price at 3.5 to 4 cents. Any other predictions?

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