Post by
kcmkcm on Dec 08, 2017 10:07am
$1.50 gone
So $1.50 a share imediately is lost to current shareholders. How is this working for them? Short term pain for long term gain maybe? I don't get it. Anyone?
Comment by
saintsinner on Dec 08, 2017 10:18am
I don't either. The deal seems very bad for shareholders. Not happy with the large price decline.
Comment by
ThunderMeat on Dec 08, 2017 10:23am
Well i think it said they paid a 10% premium for the cobalt so maybe that why share price dropped. At the end of the day the balance sheet should be the same because they issues shares for non cash assets. You invested in a cobalt pure play for them to buy cobalt and sell it at a higher price.. i dont see whats wrong with this play unless prices never go up
Comment by
saintsinner on Dec 08, 2017 10:40am
A 10% premium is a killer. The price has to rise alot more to get even! Why such a HUGE premium? This just does not make sense.
Comment by
ThunderMeat on Dec 08, 2017 11:13am
They expect price of cobalt to double! I think the upside far outweighs the small 10% decrease in share price to secure as much of the asset as possible. The deal wouldnt have been financed if both sides didnt think a 10% premium was nothing in the long run
Comment by
miningboom on Dec 08, 2017 1:22pm
Great buying opportunity! Get more while you can. This will be substantially higher next year.