RE:RE:RE:RE:RE:RE:RE:RE:RE:RE:RE:RE:RE:RE:RE:RE:RE:RE:RE:RE:RE:Nevsun Dismisses Baseless Criticisms From what I can gather, NSU has been accumulated and directly/indirectly by big funds. You can do some research to find out who. They have been holding the stock for years, pocketing a very generous dividend. I estimate that in 4 years they have received about 64 cents per share, US funds. Not too bad for a $3.00 stock. In essence they've been getting a handsome return. But no doubt the stock is tremendously undervalued. That is why I'm so keen in seeing the deal done! Its because NSU is so undervalued. If their mine was in Canada or the US the stock would be in the teens! and not hanging around the $3.00 US!
So, we're merging with a company that is tremendously undevalued. Has cash in the bank of over $300 million in addition to the investment in Reservoir.
The diversification and additonal operational and finanial strength, would be a huge plus. Lets face facts, the commodity rout may not be over. How can it be when the world financial disorder is hitting a peak, and gold the real barometer is telling us that something is terribly wrong somewhere. Gold is flying, in the face of projected higher US interest rates.
You made a smart move to divest in this excellent run - congratulations - but lets face it - why would Freeport divest themselves of such a lucrative property, for a pituful $135 million? That amount of money is probably less than 1/10 th of 1 percent of the total assets and working capital
For my money I'm hopeful that the merger will go through - I'm convinced that the combination of NSU + Reservoir would propel the stock to where it should be - at around the $7-8 level. Which would mean an additional $6 or 7 for each Reservoir share....To me that sounds good!
That is why I'm riding this and saying yes to the merger. A no vote, would mean, agony for many months, years to come. The risks are more with a no vote, since I don't think NSU will take it kindly, if it has been played, intentionally or not. And I don't see that this blackmail of the dissidents is going to convince them to sweeten their offer. Heck does anybody know or met Jim Bao? Who are they? According to the article in the Globe and Mail, who tried to contact them, they sound fishy. Why would I put myself on their side?
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