RE:RE:RE:RE:RE:RE:RE:RE:RE:RE:Rio Proposal to Acquire Turquoise HillWRN is facing some headwinds right now: currently in overbought territory keeping investors such as myself from deploying funds, FED raising rates which puts downward pressure on all stocks/commodities, talks of recession looming while the largest bubble in stock market history seems it could pop at any moment.
The specs are taking over and will dictate the price movement going forward. Will they by themselves get the share price to where it needs to be to "justify" a takeover based upon a "resonable premium off of the 30 DMA"? Simple answer is no, they will not.
Specs will only be able to keep up any momentum if RIO (or NEM or another major) start to purchase shares in the open market, which may not happen for another couple of months. RIO may have to "manipulate" the share price upwards to get within reasonable striking distance of the takeover target price. That is their decision to make in conjunction with advice from Paul or the BoD. Who knows if this is something they would even do. All I know is that the specs will do nothing but yo-yo the share price and it will take concerted buying from a major(s) at some point later this year if we are to reach the "promised land" in 2022. For the record, my "promised land" is a bit longer on the promise than Sooner's.
Since we don't know when the majors will start purchasing or how much or whether or not RIO will sign on for another field season with an additional bump in ownership % and a possible extension of the purchasing moratorium, we are left with uncertainty for the next few months. And, the markets dislike uncertainty, which rolls right back into the very first paragraph above.
Dr. Copper dislikes recessions, boy, am I sure glad that WRN has as much gold as they do, we can weather any type of market that comes our way. Sorry copper bulls, gold will be the winner of the two metals in play here.