Re: 1 Possible scenario on how we got here
in response to
by
posted on
Feb 28, 2011 03:02PM
I have 2 solutions for you then GoldBandit:
Buy all the CMM you can now: that is what I have been doing
Yes, good advice but to be honest the amount of new shares I have money to buy now is insignificant when compared to how much I already hold.
Hold some WTG paper (if) when they buy CMM, that way you can continue to profit from the CMM assets.
The problem I see with this is that the share price of WTG will fall big time once a takeover is complete. I don't believe for one second that WTG is worth$ 4.50 a share.
At $1.20, you will be in a minority position I believe and will be forced to tender your shares over...
This is certainly possible but I recommend that shareholders hold out for the best price and the way to do that is to say no to the initial offers. I've seen this before and the longer shareholders hold out the better the offers get. I recommend that shareholders don't sell themselves short.
but this is all speculation until it happens, maybe we are arguing over something that will not even happen.
Very true and since this is all speculation I'd like to point out to everyone that the price of $1.20 is speculation, too. What if the offer comes in at 85 cents? That's a nice premium to the market valuation right now...... Of course that sucks even more than $1.20. So, I recommend to CMM shareholders to get prepared to vote NO to the deal and to keep voting NO until the price is acceptable. Give the growth potential of CMM my price is higher than $1.20, for sure.....
However, either way for me, loading up on CMM makes sense. Either they get an offer and I make 50%+ ROI in 1 week from now or CMM is left alone and I make 100% over the next few months.
Good advice
Either way, I will be smiling! The difference is if they get bought out, I will then have more money to invest in my other favorite plays sooner: GNH, GAX, PHO and VTI.
I'm going to check these out...