Vulcan Minerals Inc V.VUL

A stupid question

[Alim33]

If VUL owns 1/3 of SALT and SALT's market cap is 300K, then why isn't VUL's share price and market cap higher? MC should be at least 100K+ ?

[robertwfb]

stocks in these types of relationships don't always move in lockstep. I think most who are in the know realize that Vulcan is under valued at the moment. however it appears that this will soon be corrected and Vulcans value will start to improve, possibly dramatically!  at least that is my outlook and hope!

[DeputyDawg]

Easy answer. If Atlas are taken over the money goes in full direct to Atlas shareholders. Vulcan's share goes to Vulcan and what they do with those funds is down to the Board.  The Board may pay themselves bonuses or they may main retain funds for alternative investment. If there is a special dividend paid it is very unlikely all of the Atlas money will to distributed to Vulcan

[Copperking102]

                  Everything you say here is true, but what you fail to mention is the leverage that VUL gives you. If you're dealing with a fixed amount of cash to invest, VUL offers you an 8 to 1 ratio in shares for the same dollar. This being undervalued as it is, once the buyout is complete, with you holding more shares the total value of that

[wreckhouse]

when the dust settles what's everyone's price for VULCAN ?  BCRNW

[Copperking102]

Really hard to say with so much going on, yet all roads lead back to VUL!! I look at Patrick as being the patriarch of the "family of companies " He has sons and daughters, Atlas, Copper, Nic, and Kel,and Goldie, and now a grandchild called Trip for short. All of whom will be successful in their own right, always making sure Pop's is taken care of. So where this will end, who knows

[DeputyDawg]

Copperking. There are around 44m low price options and warrants which will dilute Vulcan to around 155m shares, 60% more than Atlas and so your 8 to 1 comparison is not valid. Yes there are other assets Vulcan are involved with but these all require further finance and are more longer term and of no interest to me. I am only interested in the assets Atlas Salt control. On top of the future

[Copperking102]

I agree with the diluted share count, but my math runs like this: $24k is the dollars I have to invest. I could buy 6k shares of SALT, ($.4.00) OR 48k of VUL, ($.50). Buyout happens @$10.00 as an example.  VUL is holding 32 million shares, fully diluted, thus their payday is worth $320 million, or $2.00+ per share. My 6k shares of SALT are worth $60k or my 48k shares of VUL are worth $96k

[DeputyDawg]

Apologise if I am wrong but don't Vulcan own 28,891,000 shares in Atlas? Take that and tweek your figures to $3.71 and 52c which are the current prices now and the calculation is much closer. My thought is you rely on the full proceeds to Vulcan being reflected in their share price if you sell or waiting for a special dividend for part of their cash mountain whilst the rest is invested in

[Copperking102]

Yup, you're right about my personal view of this investment. I'm here for the buyout and all the proceeds that it will bring which may happen sooner than most people expect.Thus, maximum leverage is the order of the day. Good luck with whatever path you choose...

[DeputyDawg]

I think both of us will do well which ever route we go.  Final point for me chosing the Atlas road is that I want those Triple Point shares.