Re: I posted this on Stockhouse
in response to
by
posted on
Oct 16, 2009 02:23AM
15 Gold properties & 1 Molybdenum resource - Beardmore & Geraldton, N/W Ontario.
ONT to consolidate 3 to 1 before merger, so exchange ratio 1 ONT for 1.25 RMK on day of annoucement must change to 1 ONT for 3.75 RMK shares. Ratios will give RMK shareholders approx. 60% of new company. My 3750 RMK would yeild 1000 ONT a easy lot to sell, as I have found sometimes lot size matters when things are moving fast. TD did not surcharge me for an odd lot I think only because they knew of merger deal, but my last merger I ended up with 800 shares and when I went to sell them I was charged more for commision for an odd lot.
Reading ONT hub messages I think they are unhappy with deal.
A. Because (I think)most traders believe consolidation always leads to loss. ONT loss,
RMK gain in % of new company, but in short-term both stocks lossing as ONT share-
holders sell-off giving you more time to buy before, I Predict, more good news of RMK
JV with Priemer, or other RMK results, or a competing offer which could cause a little
excitement, or Publicity of deal anywhere. (The deal makes good sense RmK has
mill, ONT needs mill and could start feeding in some 1000 plus gold.)
B. Fatigue, many have been waiting for results for a while.
C. Their directors have many options at I believe 50 cents a share, which should adjust
to about $1.50 a share, which in my opinion is a good deal for them, but should they
excercise them it would give the company money at a critical time, so they could
increase mill capacity from 200 tons/day to 500 tons/day.