TriOil Resources Ltd TRIAF

funny market for TOL

[shambano1]

we know they are in exclusive discussions with another company that may acquire TOL, we know that LTS is a partner on some of their wells and we know that LTS owns a good chunk of their shares already.

The logical conclusion  is that LTS will acquire TOL for a share and cash offer or just a share offer, since they are tight with cash at this time.  

so given LTS SP of roughty 8.00 and an assumption of a 2 shares of TOL for 1 share of LTS, that leaves a gap of 1.50 profit for anyone buying shares today.

so either the market just doesn't believe that a deal will be reached, or there just isn't enough risk capital out there will to bet that a takeover will happen.

TOL is in a strong financial position at this time, so I would think they can hold out for a top tier price from a strong acquiring company, but is this market with lots of barrels looking for a new home, one never knows what will happen.

I don't mind hold TOL for the longer term if a deal is not reached since they have 3 nice resource properties for future development and they are primarily oil and liquids focused and will do quite well in this environment.

just rambling here so DYODD

[Sonofmshade]

In negotiations you have to be prepared to say no in order to get a fair deal. I guess people are thinking thus far that the answer is no. They appear to be at the floor of what their valuation is...I'm sure if they don't close a deal it will hurt the stock short term but really it is already well under what its valuation should be so I don't imagine their should be too much downside

[gatlintrades]

Or your 2:1 TOl/LTS share ratio is off and the actual price being offered is much closer to $3 per TOL share. LTS doesn't need to do a deal. They certainly don't need TOL at $4-5 per share. They hardly have the capacity for it. If you take a spin through the LTS investor presentation, it is apparent that the company has ample opportunities to put its capital to work without M&A. That