Re: Buyer?
in response to
by
posted on
Apr 23, 2009 12:12PM
Golden Minerals is a junior silver producer with a strong growth profile, listed on both the NYSE Amex and TSX.
I'm no mathematician, far from it, but I started to juggle around some numbers re possible takeover stuff and came up with the following. I hope you get the drift and can come up with a more plausible or sensible scenario.
It could be that a buyer is in the wings sorting things out. A buyout offer for roughly a double, 1.20 or so, would cost a potential buyer roughly 360 million plus or minus, if you consider stock out at 300 million.
Shorting or manipulating 5 to 600,000 shares a day, keeping it from getting to .60, would cost them roughly 30,000 bucks (the difference between .55 and.60, roughly .05 each) for each 600,000 shares they had to cover or settle up for. A month of this could amount to a cost of some 900,000 dollars.
If they simply let the stock run, it could hit say 1.00 before an offer of a double could be made. A double then would be 2.00 per share or a 600 million offer, a huge difference over the 360 million. Better to spend the million or so per month capping the stock, since the "savings" would be humongous, in the tens of millions.
My numbers may be way off, but is this the way these guys play this game?