Post by
digger144 on Oct 04, 2011 6:50pm
Sitting Duck...
....That is right!
We are a "Sitting Duck"....and I hate this feeling!
With the unexpected downturn in the gold sector Trelawney is very vulnerable to a Hostile Take- Over!
Having said that, I believe Management does have the bases covered and with the support of the Lock Up Gang...we may get through this vulnerable period.
I expect strong buying to come in very soon in order to solidify our bargaining position.
The problem with being a Sitting Duck is that undesirable "things" may happen. One thing that is for sure is that we will be taken out at much higher price from the closing price today...but...there is a threat that it may come in at $6.00 to $8.00 rather than my projected target of $10.00 to $12.00.
I truly believe that there are a couple of potential suitors on the door step and this should work out fine for the final outcome but nothing is for sure!
Trelawney Management needs time to get out further drilling results, an updated NI 43-101 Resource Update and a Preliminary Economic Assessment. I am very thankful that we do have a Shareholders Right Plan in effect!
What may be our "Ace in the Hole" is the fact that there will be a bidding war for this prize...a hostile take-over bid may light a fire under this stock! The catalyst that is needed to get the party started!
It is important to remain focussed through this period of uncertainity...one way or another we will get beyond this chapter!
The take-over threat is most definitely in the cards, it has been for sometime now...we must hang on!
My concern is that we will not get fair value which in my opinion is $10.00 to $12.00...but...we may be "victims of circumstance" and the bid may come in at $6.00 to $8.00....remind you of someone?
Yes...Augen Gold...."victims of circumstance". However, not a good comparison...Trelawney is much more advanced and we are sitting with 90 million dollars in the bank!
I just want to share my thoughts with you...another good reason to....hang on!
Digger144
P.S. The majors have recent history to compare a similar set of circumstances where they sat
on their hands and did nothing in terms of consolidation and taking advantage of buying
opportunities to enhance their portfolios...I truly believe that we will see action in the Junior
Sector very soon...the majors have had plenty of time to come up with a growth strategy.
If you have a decent Junior with serious potential...you must hold on to them!