OTCQX:GTBAF - Post by User
Comment by
Goaweighon Jan 08, 2020 10:41am
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Post# 30530301
RE:And about the NSR...
RE:And about the NSR...You aren't wrong and the Spinco won't be worth $ 2.00 anytime soon but that's up to the market to decide.
I believe Chris suggested that the market cap of the NSR Spinco could be around the same market cap of GBR " one day " and when he said that the market cap of GBR was around $ 350 Million.
And technically GBR should pull back a bit after spinning out the NSR.
But so what !
What I think is interesting is how will the market price the Spinco. There are probably thousands of investors who feel they missed the boat and can't bring themselves to buy GBR @ $ 9.00 even if they believe it's going higher. Call it The Venture Investors Paralysis for lack of a better explanation and I've certainly experienced that myself, but that certainly may not have much effect when it comes to a proxy for GBR that's only trading at .50 or who knows, maybe $ 1.00 even though it's true value may not be realized for years.
If the Spinco were to ramp up to $ 1.00 or even higher simply because it's cheap relative to GBR would that automatically mean that GBR should fall by the same amount ? Maybe in the very short term but eventually events will dictate and GBR will keep going much higher.
But what interests me is what are we and the market going to do when the Spinco starts to trade ? Depending on price I think I might take a serious look at buying more Spinco and who knows maybe tuck some of it aweigh in my TFSA and forget about it for awhile. Me and a few thousand others too maybe.
OK,it's going to $ 2.00 LOL ! GMAN100 wrote: I don't agree the NSR will take off hot. I'd like to be wrong, but the stock went down a bit when it was announced in Oct. Once it starts trading I give it 25-50 cents after it settles unless the stock gets a lot hotter.
Logically since it's value is currently baked in the stock price, when it separates GBR should take a hit downward for the implied value of the NSR. After all it's not any different than going Ex Dividend.
So if you think it's worth $2, You better expect GBR to drop $2!
Go ahead, make my day! Humour me with why I'm wrong.