Re: My 2 cents re:Lack of news
posted on
Apr 19, 2008 06:58AM
The rising tide over the next 6-12 months will raise all the E&D boats. There are numerous examples of exceptional resource developments with languishing prices. Nearby Marathon PGM is yet another example. In a bullish market with a vibrant retail sector NOT would be $10-15 now. Much of that gap will fill in as liquidity eases, however drill results will lever it furthur. So, 3X to 5X where we are now will take mostly time, in this market where nothing trades for long term value. Our collective problem is that many of us are stretched and cannot realistically add to our positions. So, the 43-101/listing/marginability issue will be a big part of the shorter term (6-18 month) price leverage. And yes an acquirer could (theoretically) short down to $5 almost ad infinitum, but it would raise his( theoretical )takeout cost with no assurance whatever of lowering the takeout price or assuring the strategic objective. Bottom line- price will , over the next 6 months , accelerate - closing the gap on value whatever that is, and we know the latter is about to escalate. Hang in and hang on !