RE:We do not want KLDX taken overThere are a number of us on here which agree with you on this. The current questions for mgmt are:
1.) Do they believe that there is a take-over threat (at these prices), as we do ?
2.) Do they think it's in their best interest to do anything about it ? (for their shareholders, their company and their employees)
3.) Can they take action quickly enough to avoid it ?
The elephant in the room is they don't have control of their company any more (the bulk of the stock is now held by Van Eck and other institutional/mutual fund Mgrs.) That makes it hard to vote down a proposal or implement policy changes which would make it more difficult.
In my mind that only leaves a few options:
A. They have to look at the current share price as an investment opportuntunity the same way they look at acquisitions. (i.e. If I were running the company, I would be buying back stock whenever it provided a better return than you could get elsewhere in the business or industry.) Also keep in mind that a stock purchase could be 1-2 months in duration, so it's still "liquid" & could provide them a way to not only boost the market value, but generate additional gains to accelerate their business growth with.
B. They have to more carefully manage the news flow to ensure a positive and on-going growth message is conveyed to the market to boost the price. (i.e. space out the good news which I believe is coming - increasing annual production goal, reporting 2nd qtr production number, updates on drilling (assuming they are positive), financial numbers from 2nd qtr, a major expansion in production (pen pit production), etc..
C. They have to make 1-2 additional acquisitions, which could boost share price (if they are viewed favorably), boost share count, and increase the total market value. OR
D. A combination of these
If it were I, I would:
1. Start buying some stock (at least in the short-term while it is cheap)
2. Would see poitive weekly news updates during the summer as strategic
3. Would be lining up the next big strategic step which could be announced quickly (Ramp up Hollistier prod., open pit, acquisition, etc..)
4. Start with a June 30th or Jul 3rd release of their 2nd qtr production numbers, which would set the table for more positive news in other weeks (annual goal revision, update on continuous improvement projects to improve margins, update on TN progress, Possible update on the positive impact of max-ing out the Midas mill, 2nd qtr financials, etc..)
I think this approach would convince the market we are focused, growing, profitable, smart & worthy of a higher market multiple.