RE: RE: RE: RE: RE: RE: armz is in control.. Jags report doesn't count!! RBC has (Adam Schatzker), in a note dated yesterday, made such a downgrade. However, he also sees upside to $3.00 (his previous valuation) should minority shareholders reject the deal. The downside the way he sees it, it trades back down to where it was before under a rejection scenario. In his note, he hints at the bigger fundamental story that may see U stocks moving in any case. He characterizes the timing of this offer as "interesting." He calculates NAV to be $3.67.
In his December note, his valuation of $3.00/share assumes 1.0 NAV multiple on non-Kazakh assets and a 0.85 NAV multiple on Kazakh ones. Can anyone see room for upgrades in short order if U prices move?
His estimates in his December note show 2014 numbers that would be sweet and most definitely would see much higher share prices. Lower tax rates, much higher cash flow and profits.
I think that he clearly values the company much higher but at this stage, in the absence of evidence of higher valuation, he has to keep his bullish opinions to himself. For him to comment about higher prices at this point (without evidence that he can point to) could lead to trouble for him as an analyst.