Post by
alan124816 on Feb 23, 2022 9:20am
survival mode
SImple analysis: $80 mil Cash for around 50% interest in WRX. This new investor values the company at $80 mil. But the current stock price put the company at $43 mil. Therefore, I deem it as 50% undervalued.
With the injection of $80mil, the company will survive and the pilot mine will get built. All creditors will be paid off. If this mine is what the management and us long term shareholders believe to be, this project should be worth a minimum of $500mil. Even though we are giving up 50% of the equity interest, we are still far better off.
Unfortunately I have been a shareholder for too long with a much higher cost base but this deal gives me a reason to average down.If you believe in this project, the current price is dirt cheap. I am buying. Please prove me if I am wrong.
Comment by
bmw4ever on Feb 23, 2022 9:43am
i agree with you, i am also have been long time share holders and averaged down many times before, but i will not be buying anymore, for me just wait and see