RE:Those $6.00 calls for April were me today.Funny how many people don't buy until its already gone up!
As for a take-over. Sprott can block any take-over offer from succeeding, so bribes to mangement won't be enough to get this one prematurely.
When Sprott is ready to sell, it will be avaiable, and not before.
I don't think Sprott is looking for a quick flip. My money says they can look past the 6 month horizon. I suspect they are looking 5 to 7 years out, at 2018-2020, with NLG being exported out of North America, generating a fair value in the $9-10 mmcf, and a pipeline exporting oil into the pacific rim, and oil in the 120-150$/boe range, with corporate net backs of about $100 ish. All combined with production increases of 10% per year, and 2018 exit being 45,000 ish boe, and 2020 being 54,000 ish.
Sprott can do the math. For those who can't do the math, thats a forecast end of 2020 share price of about $90 per share.
No I don't expect Sprott to do allow a premature takeover in 2014. Even if someone were to offer $30 per share in 2014, that would mean giving up 20% annual rate of return over the future 6 years!
To get the oportunity cost down to 10% a year (to 2020), a 2014 offer would have to be about $50 per share. I don`t expect anyone to offer $50 per share. Put in simple minded terms, the probability of a $50 per share offer in 2014, is the same as the probabliity of LRE being taken over in 2014.