RE:Grandich on Mr. Young and TGZSPACEDOC wrote: Grandich email alert this morning noting he’s no longer speaking about TGZ to anyone via any communication method except one-on-one with his clients. But his last sentence was fitting for all the recent exchanges here – “TGZ has good assets but Richard Young couldn’t promote himself out of a paper bag”.
No longer speaking? Good. But we've heard that before. So I'll believe it when I see (i.e. don't hear) it. That includes arm-chair quarterbacking and pot-shots from afar.
It would be irresponsible for Young to promote something that may or may not happen just to suit the vagaries of one large(ish) shareholder.
The deal has to make sense on paper...and it can take many many quarters (longer?) to iron out details on a deal of that magnitude. Reminder: TGZ's market cap is just over $500M and last we heard, ABX wanted/expected $ 400M for Massawa? ..Another thing that adds to the time horizon is the fact that ANY negotionations must involve Government types as well (and we all know how slowly they act - except when it comes to holding out their palms for greasing).
This is not a Young decision. IMO, it is more likely that it is the BoD (not Young) that makes this call. I would bet Young is being told to play it coy. Collectively they do not want to risk the tragectory of TGZ as a whole on one very large deal (that besides opportuntiy, also brings with it risk, debt, dilution, etc.). As a shareholder, I would prefer that TGZ hold out for an offer they can't refuse...that will result in the least amount of risk and dilution to existing shareholders.
And if in teh end, the numbers don't make sense. Walk away and carry on the existing pathway (to become a profitable mid-tier producer)
MM