Peregrine Diamonds Ltd. PGDIF

RE:RE:RE:RE:RE:PGD hoping for a bigger takeover bid!

[ekim]

If you take a step back from the micro point of view and look at a macro point of view.

Rio tinto - doesn't need diamonds as a company, they can deplete their current productions, close them and maybe progress Fort La Corne as a one off project that is immaterial to the entire company.

DDC - Part of Washington Group -- Washington group is pushing through into Lac De Gras...but if there venture in diamonds is short lived (deplete Lac De gras and move), it is not effecting their long term business plan. 

Lucara - Side venture sponsored by Lundin. If Lucara deplete their entire pipe and closes up shop..It was a good cashflow generator and will just fail off one day and Lundin can keep doing waht they do and look at spinning off other subsidiaries to public companies. No biggie to the Lundin empire.

MPVD/SWY - They have to figure out how to pay off debt and then start generating good flows. These companies probably have the most to gain long term by looking at Chidliak and yet they have been not talked about for at 8 to 12 months as even candidates. However, at the CAD$107 million price tag....even a company like MPVD could attempt to do a share exchange and put it on the back burner until they pay off some more debt and build up a bit of a treasury.

So, the ones who can afford to buy it....from a macro point of view...don't really need it. The ones who can't afford to buy it...from a macro point of view...do really need it or they will just cease being a company at some point.

Take away the macro perpsective....the question for the ones that can afford it then...at these prices...is it too good to pass up?  That is where we get the white knight speculation.

LONG...PGD

EKIM