RE:RE:RE:RE:RE:payroll subsidies/Crazy Lawsuits
It is acceptable for the majority shareholders who own the largest block of shares to buy the minority shareholders out. The latter would have no choice in the matter. But for the stock exchange to find this acceptable, as a fair course of action, then the offer would need to represent a reasonable premium to the share price for the last 30 trading days.
I was involved in such a take-out deal. As a minority shareholder, I held over 700,000 shares in a tsx venture company. But it was only a 2 cent stock. We were offered 4 cents a share. That was a 100% premium to the last trading price. At the time, It seemed a very reasonable offer.
I would accept a reasonable similar offer, if it was made. But there is no guarantee that the share price will still be 5.5 cents, when such a deal, may finally be made. The sellers will continue to decide that!
Shares traded publically have stock exchange oversite. There are rules that need to be followed.
With a small market cap of about $17 million, would any lawyer find a company of this size really worth the time involved? How much of a cut would they really expect to get?
These kind of lawsuits can really drag out. No investor would want to get involved with a situation like that. Their money could be tied in the court system for a long, long time.
I would happily accept a premium and move on to something else. There is always something else to buy!
I do like buyouts. I don't care who does it! But I would prefer a much higher price.
Maybe that is one of the reasons why Abcourt shares has been trading so low? Certainly the fact that the company has recently had such a high AISC (total cost of gold production) is also a part of the reason. And from that profit perspective, the company has had a checkered past.
It's now time for Abcourt Mines to seize the moment! The gold price may be about to sky-rocket.
The financial situation has dramatically changed for Abcourt MInes. It will become more profitable, even with the poorer grades of ore that it has recently been producing.
There is also a good possibility that these lower grades, may dramatically improve, as new levels are accessed and developed. The high grade gold is there. And more will be found.
This company is not going broke.
But it's taking time for a larger market to realize this. There are bigger fish that get noticed first! Smart investors are buying this company's shares. They feel that the risk is reasonable. The upside looks fine.
Perhaps this is the perfect stock to buy? There remain a sufficient number of impatient and naiive investors who continue to dump their shares at a rock bottom price.
As an investment, what's not to like? Even some short term traders like this company's prospects. They work these shares constantly. But the steep commissions paid for these shares need to be factored into their trading costs.
The more committed shareholders continue to buy, leaving them fewer shares, each day, for them to purchase. It doesn't take a lot of cash to do that!
It takes guts to invest in penny stocks. Bid the price up too high and a lot of money may be lost. No one wants to pay too much. It's almost a 'Catch 22' situation.
Abcourt Mines is a good company with great future potential. And there is still time to accumulate more shares, especially for those with major shareholder aspirations.
Whatever the case, longer term, it appears that Abcourt Mines is a win, win prospect for anyone who may be interested. I look forward to many more days of purchasing cheap shares ahead.
Since I don't know how long it may last, now is still the best time to buy!
All the best! Java