RE:RE:Predictions & thoughts for the week.........Good day to you CarterZ21......
Though i appreciate your input & valuable feedback, take it from a seasoned investor & knowledgeable person in this sector, and let me further enlighten you of what's REALLY going on here..........If you haven't already seen it from my previous comments.
CarterZ21 wrote:
"I'm of the view that the recent (last two trading days) are likely the result of one and/or two things:"
'2. Short covering as shorts would not want to be caught offside should an improved offer arise, from any party."
I'll start with the 2nd reason first, because i DO AGREE with you that's PARTLY ONE of the reasons why SFarms stock has been going up.....BUT not the ONLY reason or the main one. I don't agree with you in regards to your reasoning for the "short covering" but the end result is the same however. Imo, the short covering is a"sector wise" problem or phenomenon that is affecting nearly all the top miners....or most popular ones like Sfarms. And it'sdue do hedge funds & large institutions who are implementing a double trade or hedge on Bitcoin. Meaning go long on Bitcoin...and massively short the miners. A hedge for Bitcoin more or less. So when Bitcoin goes the opposite side of their trade, their cover the other to reduce thier risk.
As for the FIRST reason below
"1. Another suitor - given the aggressive upward rise in share price and volume, another suitor could very well be accumulating. I do agree with you that it is unlikely to be SRIOT (lol) as they would not wish to invoke the poison pill;"
Let me repeat myself ONCE again here and make it crystal clear for you & EVERYONE ELSE. If you haven't already seen it or read itin my previous comments. First, there's only handful or VERY few miners who have the financial ability to do ANY M&A in this sector. As a "potential" acquirer that is. And those companies are Marathon, CleanSpark, Core Scientific, Riot & Hut.
Out of those 5 operators, only one of them would have both the motivation & reasons to go after something like SFarms. The others don't have ANY valid reasons to do so, nor would it make ANY financial sense when comared to the cost of organic growth.....to achieve the same thing! Asfor the ONLY company thatwould have ANY logical reason or motivesfor acquiring Sfarms, that would be Marathon, as the are already operating in Paraguay along side SFarms. As i already stated numerous times in the past......
There are valid reasons of why there's been a lack of ANY signifacant M&A in this sector, and TO's or Mergers have been far & few inbetween over the past few years. The main reason is cost comparisons, compared to "organic growth" andmost of these miners ...in the end.....have little asset value.....because aside of owning their own "energy infrastructure".....everything else is worthless over time.
If you take the most logical or most likely suitor for Sfarms,which would be Marathon btw, even they decided to go in acompletely "other" direction rather than acquire SFarms. Just look at what they recently did! They eventually reasoned that it was better to go to a total chaotic *hole like Africa.......and start from scratch..... rather than buyout SFarms. Now WHY would they do that if Sfarms was such a great company such a terrific deal LOL? These guys aren't dumb, they know WTH they're doing......even though i don't agreewith the move & beieive a place like Africa carries substantial jurisdicational risks.
So taking "high risks" like this rather than buying out what seems like a much lower risk and/or what so many investors here are calling a "severely undervalued" Sfarms......should be VERY telling of what's really going on here. So in the end, don't hold your breath that Marathon or anyone else for that matter.... will be making ANY bids to acquire Sfarms.......beyond the VERY generous offer of Riot.
As for Riot....and as to their motives for bidding for SFarms, let me repeat myself once again! It isn't for ANY reasons you think you know or believe or that you've read anywhere. Riot is doing it SOLELY for greed & for ULTERIOR motives that aren't apparent to many investors or outside of what's seems appropriately logical, right or involves any common sense. Onceoyu understand the REAL reasonswhy Riot is doinf what they're doing.......you'll final understand the whole picuture and WHY SFarms will not get another bid.....from anyone else.
GLTA