RE:RE:RE:RE:RE:RE:RE:RE:RE:RE:RE:RE:Initial takes on updated PEASimple answer: most investors are not millionaires, we don't have unlimited funds in order to single handedly push the stock to a level where we would be comfortable ending our buying. There are PLENTY of juniors out there right now with easy 5 bagger potential. So, why would any of the investors push this past $4 if they can achieve higher leverage with other juniors?
Voila! There is a simple reason why WRN would face some headwinds. Stock invetors look at opportunity cost remember. Of course, we all know Casino, on paper, is worth billions of dollars, that isn't a secret. Well, why would the market not immediately jump on this and push it close to somewhere in the vicinity of the eventual buyout? Lack of funds, many options available, investors need to diversify, some are waiting for the price to drop (like me) before picking up more shares, and probably many other reason.
Individuals are most certainly not rational (look you think most investors are rednecks, delusional, etc.) so why would the market be? What the market says does not change what the facts are. If I carry a gold coin into a pawn shop and the owner is out of cash and can only offer me $500 for my $2,000 coin, does that mean it is only worth what he wants to pay me? NO, it just means that there are some inefficiencies at present within the market that doesn't allow for full and immediate price discovery consistent with intrinsic value.
What would a wise investor do? Well, they sniff out market inefficiences and make a killing on them. If the market were perfectly efficient, transparent and all information was fully and immediately known to all investors at the same time and all investors had equal access to the same amount of capital there would be no inefficiencies. Meanwhile, back in reality, that is not how the market works. The market can be as ineffective as a broken compass at times.
So, you're looking at a broken compass and screaming that we are heading in the wrong direction while the driver (who knows where he is heading) is telling you to relax. Hey, I get it, you wanted a short term pop and a nice little flip. That's your game, each to their own. My game is long and strong, so why do you doubt my game plan? The tortoise and the hare can get to the same point, just at different speeds. You can try multiple flips over the next 18 months to turn $2 into $20 whereas I believe the better option is to invest in WRN. That being said, neither of us may be able to achieve an effective 10 bagger via our chosen routes or maybe we both do. LIke I said, each to their own.
But, I absolutely disagree, based upon my many points previously stated, that WRN is only worth $3 a share. Maybe TODAY it is, based upon marginal trading, but I am not worred about today, I am concerned about TOMORROW.
Cheers!