RE:Maybe LIX takeover will pass!Good observation Dtraders1, the share price hasn't fallen the last couple of weeks going into the vote next Tuesday. Rather the opposite, price has stabilized in the $2.45-$2.50 range, and heads higher on any day with serious volume. That would imply that a "yes" vote is the most likely outcome.
From AAB's perspective, I've already discussed how I think its a win/win irrespective of what happens. Given the recent decline in lithium companies predicated on the fear of a supply glut, I'm still inclined toto believe that a "yes" vote is mildly better. Nextview isn't spending $265 million on an asset to sit on it, meaning they have the capital and the expertise to move much quicker than LIX would have been able to. AAB has a 1% NSR that will only increase in viability and value as Nextview develops that property, hopefully eventually leading to revenue down the road.
Furthermore, AAB has a sizeable stake in DLE, who is already producing concentrate, and proposes a much shorter development strategy, due to the fact that its hard rock vs. brine. I.e. they'll still prosper if lithium continues its bull market over the next 2-5 years. AAB is really well-positioned, and I'm glad they're diversifying into base metals rather than putting all their eggs in the lithium basket. Personally, I think the risk/reward in silver is extremely favourable right now, and I would welcome testing the waters in that metal.
Lastly, it appears that the share price continues to remain subbornly in the $0.18-range. Up and down a penny usually on abysmal value. It appears that people aren't willing to buy or sell much at this level, especially odd given the significant increase in value we know they've experienced with Fura Gems. This is oddly reminiscent of this past Summer, after they did the sale of the rest of PLASA. I was doing the math and taking advantage every time the share price dipped down to the $0.12-0.14 range. After the quarter was reported, it revealed what anyone who took the time to do some DD already knew, we started moving higher.
Will that be the case this time? Who knows. Its hard to make the case we're going much lower given the fundamentals, but then again, the selling pressure continues to overwhelm AAB every time we get to the $0.19-0.20 range. We need the buyback to go higher from here!