RE:RE:RE:RE:RE:RE:Lets ReviewArtL5989 wrote: Thank you, Losecash. I shouldn't be judgemental about your, or anyone else's, investment objectives. But here is my perspective, and believe me if you can - I am not pro or con the merger; I am not a Dennison shill. I am a Fission stockholder. It seems to me that the ratio (1.26) is two things - 1) based on the respective values of the companys at the time of the agreement, and 2) totally segregated from the future values of the respective companys. And one thing it is not - a dilution of your or my investment. The underlying value of the PLS will surface in the new company - we, as FCU shareholders will gain by diversity and DNN shareholders will gain in their newfound share of PLS.
While it is not the 'Golden Goose' that long term FCU shareholders were hoping for, I think it is better than going it alone for the next 5 years and hoping everything turns out well.
Having said that, the inherent value of the (after the agreement) findings and the PEA findings have no affect on the value or the price of the stock of either company after July. In fact, FCU stock value is tied to DNN stock value at a 1.26 ratio, and if you compare the sp of DNN to FCU from the time of the agreement announcement you will find that to be true. Even if the PLS drilling suddenty discovered new minerals worth a trillion dollars, how would anyone know where to invest to take advantage of these new findings? If they bet on DNN and the merger is not approved then they don't gain from the new findings. If they bet on FCU and the merger is approved then they gain, but their investment is dilluted by the unequal DNN assets.
So, in my mind anyone interested in the resources of the PLS findings would wait until after the Yes/No vote and then invest accordingly - either in the remaining company FCU or DNU. After the vote, the tremendous findings at PLS will reside with either FCU or DNU. It is too late to buy into either DNN or FCU and affect the outcome of the voting. It is too early to invest in DNU. But, at these depressed prices it could be the ideal time to invest in either DNN or FCU - depending on whether you believe the merger will go through or not.
My analysis continues to support my findings back on 27July that at the end (just before the vote), FCU would be trading at or about $0.45USD and after the merger the new company DNU would start trade at approx. $0.72USD and then adjust upwards (or downwards) based on the combined assets and future potential.
I could be wrong of course, but that is where I put my investment dollars over a year ago and continue to invest. My open ended question is whether to vote Yes or No - and that decision will be influenced by changing events. I appreciate solid analysis and logical thinking and I abhor condescending comments in my due diligence. Hopefully the upcoming meeting will disclose new information - I certainly do not expect to find anything of serious substance on this BB, but continue to monitor it in blind hope and for the entertainment value.
Having said that, I would gladly entertain a serious response that either refutes or agrees with my analysis. Thanks in advance.
Well I wouldn't put me in with the golden goose crowd. I have always maintained a 2$ price target over a few years time horizon. If this takeover were to happen (Which I dont believe it will) , Fcu loses its ability to be purchased as a clean and tidy single entity (which by the way was Devs game plan that he told the world repeatedly). My estimates say we lose approx. 40% of what we should have got. After a share roll back and merging with sub par assets from Denison we would be lucky to trade at 1.20 again. Peeling out RRR from a merged company and selling would not bring cash or a premium to shareholders pockets either. The proceeds would be lost is the shuffle and we would be stuck with a company still spending money with sub par assets left. In a nut shell we are losing money by dilution and not setting ourselves up to profit from a sale of RRR. I'd rather see Fcu hunker down and trim some spending. Wait out this poor market. When the market returns our value would be maximized. That would require management to cut spending.