RE:RE:RE:Off-Side Greenday... you wrote..
DML's paper offer, at least, gives FCU a floor price of $1.25 but even then it's paper may be unable to defend FCU from a third party offer of much more than perhaps $1.30. If CCO, for example, makes FCU a paper or cash offer for $1.35 it would mean that DML would have to ante up a larger percentage of their shareholders' equity to match the offer, and with DML's market cap at only $251M there's a limit to how much more DML paper it could offer to FCU without giving up the entire company.
So would you prefer $1.30 worth of CCO paper ( or $1.30 cash) and significant dilution to PLS's upside, or the dilution to PLS represneted by DML. And if private equity bought FCU for $1.30 before October 14, or perhaps less after October 14, then good-bye for all time to any up-side from PLS.
firstly, what makes you think DML's offer puts a floor on FCU at 1.25..?, last i checked we were tethered to their price which is now in the .50's..
secondly, 'ill take cash any day, but if paper is offered, give me some paper where the valuation is calculable, not theoretical- like both dml and fcu's are....i think that you, like most posters here evaluate this deposit too dearly while using the wrong metrics.. Early stage means high risk- risk that no one will pay billions for no matter how much holders or Dev think it's worth.. As derisked as PLS, it's still just dirt.. thogh much probed and talked about dirt, dirt none the less.. not until billions are spent, infrastructure built, permits be had will a dollar be made.. People make all sorts of unfair comparisons and analagies to support their arguments- well let me make one- when you are selling land, you are selling an idea, potential, not a calculable asset.. sure there is much to be made off that land, from buildings, to minerals, but it's just dirt until then.. FCU's upside has been had, we hit it, and lost it.. if we want to sell now, we need to give up that upside to someone putting up the cash and taking on the risk.. DML's offer does neither..