Alio Gold Inc. T.ALO

Alio Gold the new mid tier gold producer

[Moppel]

In the future we will see a mid tier gold producer name Alio Gold. I see  excellent synergies between the Florida Canyon Mine and Lincioln Hill and Wilco.

[Fullplate]

I still see this company with a bullseye on its back. Coming into this from Rye Patch, the look and feel here is pretty much the same as before these two companies came together. Pretty good assets that are greatly undervalued, allowing an acquirer to pay a decent premium in an all share deal. Most of the good mid-tier companies want to get bigger. They don’t want to overpay, and they realize that

[auburn2]

I like Eldorado. They could pay cash $400 million for ALO -- tomorrow -- and they wouldn't be overpaying. That would set the SP at about $4.75, and most ALO shareholders would be happy. Given the net cash position of ALO, $4.75 would cost somewhat less than $400mm. Eldorado eyes the Abitibi with $590M Integra deal Ana Paula alone is a superior asset to Lamaque.

[Fullplate]

Eldorado at that price would be wonderful, cash or stock. McEwen would be another, but would have to be all stock. McEwen is in Mexico, Nevada, Canada, and Argentina. Alio’s assets would be a good fit. Rob McEwen desperately wants to build a Fortune 500 company.  As as much as I would like to see $400M, today’s bargain prices would result in quite a bit less, I’m afraid. But even with less