RE:RE:RE:What's wrong with the stockYes, galnakon, we are all disappointed with the price action in EDV ,and gold miners in general, since the price of gold peaked in Aug of last year. But your statement that EDV acquiring Semafo was a 'strategic rape' is nonsense, and the facts don't support that claim.
When the deal was announced in Mar 2020, it was at a premium of 54.7% . Semafo's share price jumped by 39.2%, and EDV dropped by 7.4%. Semafo's share price was $2.5 C before the merger was announced. Except for a brief period in the middle of 2019 when the share price was just above $5 C, Semafo's share price was up and down between $2.5 and $4 C going back to 2016. At the time of the merger being completd, July 2020, Semafo's share price was approx. $5. (if you didn't like the merger that was the time for you to sell, and it would have been, except for the couple months in 2019 when it was slightly higher, a multi year high for you) Since then EDV has fallen in price by about 26%, and in the same period GDX (a general indication of all gold miners) has fallen about 22%. EDV is mostly just following the same trend all gold miners are.
At the time of the merger , Semafo's mine was shut down because of a security breach. Many industry analysts where very critical of Semafo's lax attitude to security and general incompetence. Since the merger EDV has taken control of the situation, and there is no reason to believe they wont be able to keep things running smoothly - EDV has proven to be very competent operators. At the time of the merger it looked like it would be a long and slow climb out of the hole Semafo found itself in. Except for a couple months in 2019, and again in 2016, the present ,low, share price equivalent ( .1422 x EDV share price) of $3.7 C is towards the upper end of Semafo's price range going back many years, and much higher than the $2.5 share price when the deal was announced.
At the time of the merger announcement , many on this board questioned the high premium ( this board and retail investors in general in EDV are of little consequence since EDV is only 5% retail held) . The market also didn't seem to like the high premium. I , and others, think a strong argument could be made at that time that Semafo was given a life line by EDV. Since then I think it is safe to say we have moved on and are just thinking about the present situation, which looks really really good, except for the present share price.