GREY:ESOFD - Post by User
Comment by
leverage1971on Sep 16, 2013 10:58am
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Post# 21742502
RE:will the market blow off 100 m of mineralization
RE:will the market blow off 100 m of mineralizationLosecash, you are entitled to your opinion regarding the deal... it is obvious nothing will change
your mind but to be clear
A 30% premium on both companies all time high implies a projected take out $ amount
of 9.20 on AMW which further implies that Dev will, along with the Board of FCU 3.0 and
the large shareholders who asked for consolidation, sell the PLS property to a major for
60m lbs (closer to 57 mm lbs). This implies a $ 10 a lb metric.... but there is one problem,
in fact more than one with your thesis, they by all accounts have more than 60m lbs already
and have a strike length 3 times that of HAT at 1/2 - 1/4 the depth.
Exercise your right to say no by voting no but just because you don't like the deal in no way
should cause you to believe that anyone at this point is interested in "short changing" the
bigger deal that happens after consolidation... They might not wait for the "ultimate blue sky
potential deal" but I would bet you will see in the range of 70-80% of the all time high.
With a merged PLS and the OS shares of FCU 3.0 that would be a share price of about 2.10
to 2.25... which according to some is still too low. Remember 100 m lbs for all intents and
purposes is a billion $ or 2.98 a share for the FCU 3.0 stock.
All spec but I highly doubt FCU goes for 1.8
All the best
Lev