Post by
tofurkey on Oct 17, 2011 9:42am
Valued at $1.32
NR says the offer values SQI at $1.32. So far, the market not agreeing. I put a limit order in at $1.35, but am willing to hold on to my shares if we don't get there. I still like the SQI portfolio and the newco will have lots of good targets to drill over the next while. Also confident in Turner and willing to see if he can do it again.
Comment by
zzzman on Oct 17, 2011 10:07am
I like the part in the agreement where it says that New Gold has the right to match any other offers. I think that there will be new offers. We still have the results pending on 3T's and the Yukon.
Comment by
redbad on Oct 17, 2011 10:29am
At current prices Capoose and davidson are being bought/valuated at1 Cad/share. So the market values Yukon, 3T and 15 million cash at 0,13 cent/share. There are Yukon-players which are more expensive...
Comment by
zzzman on Oct 17, 2011 10:45am
The new company, McIntyre, New Gold will own 9.9% based on paying $3.5 million cash for the shares valued at .78.It also says that the new compay will have $15 million in cash for exploration development. Plus the deal is also based on the current value of New Gold. I took the year high on new gold and on a 25,000 current position of SQI, it worked out to over $6,000 more.
Comment by
GlobalJoe on Oct 17, 2011 11:18pm
Since the each share of SQI is really only 1/3 a share of McIntyre the market is valuing the Yukon, 3T and $15M at 0.30/share. 0.30 * 3. The cash alone is 0.33 per share of McIntyre if they end up with the 45M out (15M/45M). So no value for the projects themselves. Is this analysis correct?
Comment by
zzzman on Oct 18, 2011 2:24am
If you are looking at this as a short term deal, then my advice is to sell. There are so many variables in the market right now that I am afraid to buy green bananas. If you have balls, hang in.
Comment by
casey13 on Oct 18, 2011 7:59am
In my opinion there is now a significantly less amount of risk in holding SQI today than there was last week. From here on out we are effectively a mid cap gold producer with a small Yukon newco on the side. Newgold is already considerably undervalued and to me represents good value. Unless SQI gets a considerable premium which is very unlikely in this market I will just hold my shares.JMHO