5x Move UP from here ...
So, has anyone read through the MD&A's...?
Because no one has mentioned anything about the .46 cent options yet....
Options were issued to the new management team when they took over here. The strike price is .46 cents. This gives the team motivation, incentive to work and get deals done, make money for the shares to go up. Once the shares get upto .46 cents and/or higher, they may exercize their options, cashing them in.
Essentially what this means, is that buying down here and holding to .45 cents or higher, is making 5x on your trade. But during that rally we could know more about the next deal, and determine whether we want to hold on for even greater gains. Having options for the management team to exercize at .46 cents would only mark the minimum of potential for this next rally.
I'll say it again, this looks a lot like a bottoming pattern by watching the price action, level 2, and other factors.
I'm holding for this trade, as it seems like a no brainer at this point.
The company has done it time and time again, it's what it does. It invests in undervalued companies, and turns those deals into a profit. It has the record of history of doing so.
"Jaguar Financial Corporation (“Jaguar” or the “Company”) is a Canadian merchant bank generally investing in companies Jaguar determines to be undervalued, overlooked and underappreciated. The investments made are usually event- driven, for example, where an investment is made in a company that is the subject of a takeover bid or where some other change is initiated by a third party or a shareholder of the subject company. Jaguar’s objective is to assist management of the undervalued company to create value that the market is missing. Jaguar has made friendly supportive investments in companies such as Lakeside Steel Inc., Royal Laser Corp., WGI Heavy Minerals Inc., Thallion Pharmaceuticals Inc., Virtek Vision International Inc. and Century II Holdings Inc. where Jaguar participated in strategic changes that resulted in the creation of shareholder value. Century II Holdings (“Century”) had redundant cash resources of approximately $21 million, was generating substantial cash flow and was undervalued. Jaguar acquired 19.9% of the issued shares of Century. Jaguar arranged a financing commitment of $65 million and made a take-over bid for all of the remaining issued shares of Century. A competing bidder made a bid at a price that was 51% higher than the Jaguar bid price. Jaguar tendered its shares in the competing bid and realized a gain of $10.2 million. Jaguar had identified HudBay Minerals Inc. (“HudBay”) as a cash rich target where its market cap was less than the total cash resources, with no value being ascribed to HudBay’s revenue of $1.0 billion and $250,000 million in EBITDA. When HudBay proposed a merger with Lundin Mining Corporation (“Lundin”) involving 100% dilution to the HudBay shareholders and without any required approval by the HudBay shareholders, Jaguar acquired 1.0% of the issued shares of HudBay at a market price representing a 38% discount to the cash per share in HudBay. Jaguar appealed a decision of the Toronto Stock Exchange to the Ontario Securities Commission which resulted in the termination of the proposed merger with Lundin. The HudBay shares increased in value to a level that represented 3.2 times its cashresources. In separate transactions, Jaguar acquired substantial ownership positions in Virtek Vision International Inc. and Kinbauri Gold Corp., two companies that were the subject of take-over bids. Jaguar was successful in improving the ultimate acquisition prices for both companies. 3 Jaguar acquired 14% of the issued shares of Thallion Pharmaceuticals Inc. (“Thallion”), a biotech company with substantial cash resources. As the largest shareholder, Jaguar negotiated an improvement in the offer made by BELLUS Health Inc. (“BELLUS”) to acquire Thallion. Jaguar entered into a voting support agreement with Thallion to support the improved BELLUS offer and concurrently Vic Alboini (“Alboini”), CEO of Jaguar, was appointed to the BELLUS Board. Jaguar realized a gain on its investment in Thallion."
"In recent months, the Company has been assessing various opportunities to deploy its capital in one or more businesses to create shareholder value."