X-man

Thanks for your reply and input. I think your logic is very sound in saying that when SFMI is bought out (and I think we all agree it will be) that GHDC will as you say "ride their coattails and will also be purchased". I agree, this is sound thinking. There is no doubt GHDC will eventually have revenues and therefore it's stock will have a commensurate value.

My question is in regard to how people are deciding on an appropriate price to pay for a share of GHDC? How (why) should I concluded the current price ratio between SFMI and GHDC is one that makes investment in GHDC as compared to SFMI make sense. I can only invest each of my dollars in one place at any given time. I'm asking for someone to provide a factual analysis of why they are choosing to buy GHDC at it's current valuation with dollars that could have been invested in SFMI? There are many things that are uncertain about the future of SFMI but what we do know is they will receive revenues from every oz of bullion they produce. Since there is absolutely no way to have any clear picture in regard to what percentage of SFMI's production will result in revenue to GHDC how in the world can anyone have any idea what a fair value for the stock is? Or what the value ratio between the two stocks might be when a buyout occurs. How can anyone even suggest that when the buy out happens GHDC might sell at a higher price than SFMI. At the risk of sounding harsh, I will say that given the questions I have been raising (none of which have been answered) this is a ludicrous statement unless there is something really big that I am missing. That's why I'm asking the questions so I can find if others know something I don't. I don't want to miss an opportunity.

Silver Falcon