Post by
Dtraders1 on Feb 15, 2018 8:39pm
NextView had already delayed another transaction before LIX
Nothing surprising with the delayed transaction with LIX. Just look at Bacanora Minerals (BCN), NextView agreed to acquire 19.89% of the shares and was suppose to close the transaction end January 2018. On the January 31, they extended the date.
It's just a bad timing for NextView and got caught up with many transaction ongoing in a narrow time frame. Now with the chinese new year it will be delayed a little bit. NextView is on a chase for lithium and made multiple deals but they didn't estimate the obstacle and the time it would take to complete the financial portion of them.
Today some investor freaked out but they shouldn't because if this deal fail, LIX will get the 20 millions dollars for termination fee and be again available for a takeover with better offer. So it's a win-win situation now for LIX. And if all goes well, LIX shareholder will get their 2,61$ Cash per share.
Anyway there was a low volume today when you look at the outstanding share available, so this was a mini panic....emotion will cloud your jugement! The shareprice will slowly go up again in the next days. While people panic others take avantage of the situation :-)
Comment by
LongRoad on Feb 15, 2018 9:36pm
Thanks for the information on Bacanora. With the Chinese it is never simple, even when they are well funded. Sometimes the funds are even held up by the government. Eventually they do come through. As I wrote before, these guys won't simply walk away from $20 million. The deal will close, but maybe not as fast as we were all hoping.
Comment by
commodityking on Feb 16, 2018 2:28am
Very good analysis. I had the same opinion: the reverse-break fee is quite substantial, and in my opinion it de-risks the arbitrage angle to a large degree. I picked some up today. We need to have the courage to buy when the sheeple are selling. Of course there could be more selling pressure tomorrow. I have a feeling, though, that today was a shake-out. Good luck.
Comment by
LittleLadyPhD on Feb 16, 2018 10:38am
Agree. Panicky weak hands...reasonable reasons for brief delay in finalizing deal. Picked up some more myself. GLTA
Comment by
ch1nmuzak on Feb 16, 2018 8:52pm
I sold off a bunch of "conservative" stuff and underperformers today to put together enough to buy into LIX in a significant way today too. Seems like an easy 10.5-11.5% win over 1-2 months to me. I'll take that kind of return over that short of a period with that low risk every time.