Tara Minerals Corp TARM

Is TARM buying TRGD really good?

[canada7]

Can some one make a case for it?
Note that Richard made several serious mistakes in the last 3 years. First, he announced the production, only to see that the production is delayed for more than one year. He stated that he learned the lesson, and wait until the production to start before he announced it again. But immediately he made the identical mistake, he announced the gold production, only to be delayed for one more year. He just did not learn his lesson in the first time. 
Also, earlier, people are rejoiced with TRGD business model, only to see that almost all of them collapsed. The business model fails if Richard cannot find good partners. Finally, Richard moves to production himself. This is a good risk that he took because he was never a miner before. Thus, he had several mistakes in sequence. Finally, he got something right last year, things are finally moving to the right direction, then Richard made he same mistake by issuing gold production.....
Anyway, I am still not convinced that it is good for TARM to buy TRGD. It looks like this is a way for Richard to save TRGD by dragging his stronger boy to save his weaker boy. The problem is that whether the weaker boy will be strong or the strong boy will be weak as consequence of this transaction? It is good for TRGD share holders, but is it good for TARM share holders?

[parapooper]

"It is good for TRGD share holders, but is it good for TARM share holders?"You answered your own question there since at least 80% of TARM share holders are TRGD shareholders.The real question is why TRGD is trading at 60% of the the takeover offer? Nobody wants to make a quick 66%?And whats with the shady law firms and russian bloggers poopooing the deal at a 2x/day rate?

[canada7]

No, there are many TARM share holders that not TRGD share holders.TARM was doing fine, but TRGD terrible. It was a holding company, and thus its value is deeply discounted. Buy the real company, not the holding company. Thus, I think the real company buying the holding company is BAD. I have not seen a good reason from any one to explain the real benefit of TARM to buy TRGD.Note that if holding

[parapooper]

Sure there are many TARM shareholders that are not TRGD shareholders but they are the clear minority. Since TRGD owns 80% of TARM at least 80% of TARM shares are owned by TRGD shareholders - so TARM  should always act in TRGDs best interest. TRGD was clearly valued too low. If TARM had offered to take them over at their market valuation they would have basically paid 22 TARM shares for 40

[canada7]

Sure, welcome to 60% hair cut.

[parapooper]

nobody is getting a 60% haircut.TRGD shareholders get 125% gain for their ridiculously undervalued shares.TARM shareholders get 20% diluted to obtain the cash, stocks and properties of TRGD.Since TARM lost already more than 20% value in relation to peers since the announcement, TRGDs cash, stocks and properties have been priced into TARM as a negative value at the current shareprice, which is

[canada7]

You are wrong. TARM share holder ALREADY had 60% haircut.

[parapooper]

can you stop the cryptic posts and specify what 60% haircut you are refering to?

[FH_Trader]

Yes, thats correct. TARM shareholders have had a 60 % decline from the top om $2.75.But this is not related to the buyout of TRGD. It had declined before the announcement.From another forum posted by mudpuppy on why the 1:2 ratio is a fair deal:The last trgd/tarm stock ownership ratio I saw was .725, as I recall.Tarm fd share count is now approx. 62M(55M os + approx. 7M options and warrants out

[parapooper]

well, technically it's a 46% decline from 2.75 to 1.47 I agree with your other points though. The tailings deal sounds really good, provided the grades are as published. Basically they paid 2.5$/ounce AuEq for high-grade, already mined ore - not bad considering Goldcorp recently paid a few hundred times that amount for resource ounces in the ground. If they get that gold out at $400 cash cost

[canada7]

The big decline, in my opinion, is caused by Richard's over promise. He was telling people that TARM will generate millions of cash income PER month  from gold production (from $3M to $8M per month) starting in late 2009. What happened to those gold production? No wonder the stock came down hard. Richard better learned his lesson hard, otherwise he will over promise again and again in the

[mudpuppy]

https://messages.finance.yahoo.com/Stocks_%28A_to_Z%29/Stocks_T/threadview?m=tm&bn=67398&tid=3746&mid=3768&tof=8&frt=2