I have to disagree with your assessment Sum. First mgmt owns 25% of the company or perhaps a bit more with new shares and options. At this level mgmt has a lot of power. A first round bid must achieve 90% which would not happen if mgmt did not like the bid. A subsequent squeeze out bid must achieve at least 2/3 of the shares or 66.7% to force shareholders via a fairly complicated, time consuming and expensive process. No doubt if AE and the gang said no it would be very hard to convience Mackie, Quincy's gang and the hard core of retail so it is unlikely that a bidder could even get 66.7% if mgmt and BOD said no.

Now what would AE and co. think is a reasonable price. Well given that the price of this type of graphite could sell for anywhere from $5,000 to $30,000 per ton or more and they have found a minimum of 1.42 million tons, the deposit has an insitu value of between $7 and $42 (US$) billion. What that makes the NPV is anyones educated guess for now. But lets say an acquirer offers between 5% and 10% of the deposit value (likely very low ball IMO since the profit on this deposit could be astronomical due to low recovery costs) but in any case this gives a range of $350m to $4.2b (US$) or a share price range of $C 6.65 to $C 80. Again as I said this valuation approach is likely not the best way to value this type of deposit since cashflow would be so great. So lets just say this is on the conservative side.

We know mgmt has indicated that pricing will be at least $8500, so we have some idea what they are thinking although they have not explained this number very well. But plugging it back in to calculate a share price range we get $10 to $20 per share. Again I would use TakeNotes cashflow approach to get a value which he did and arrived at $US 2.5b or a share price of $C 47.5. A more likely fair value if everything else remains the same.

Given what we know about the deposit, the potential for much more graphite maybe 2 or 3 times what the current estimate indicates, the low cost of the potential recovery and purification method, and the high demand for this type of materal (at least judging by the number of NDAs, I have not seen any other graphite company indicate they had even more than 1 NDA let alone 20 plus).

Given all this do you really think AE and company will sell this find to the lowest bidder or that they will be satisfied with a price sub $C 10. I would be very surprised if that were to happen. IMHO what is more likely given the running room that AE has is that we do not get a takeover until well into next year (or heaven forbid even beyond that) but that it is for far more than $C 10.

Based on everything I have read and studied about the Albany deposit I think the following:

1) This is a special type of graphite which will have many many high tech applications

2) it is very rare to find such a deposit and it is possible that none will ever be found again

3) This deposit could contain as much as 2 or 3 million tons when it is actually mined

4) Because of military potential the Canadian government may restrict buyers to the USA and Canada and make it easier to fend off unwanted suitors.

5) AE will want to wring every cent out of buyers that he can. Maybe you haven't noticed but he is extremely stingy selling shares, this is an indication that he will not be giving anything away. I am sure he could of done a PP many times over and sold some of his own shares to boot, but he did not because he believes that he has found the motherload and he is not letting it go cheap. And he's a Newfie and they are as contrarian and stubborn as hell, which I love about them.

Ignore the day to day stock trading games, I don't believe these will amount to a hill of beans, this is just some low level day trader at MS or at home, who has a formula for maximizing his movement action in ZEN, since it is very liquid and a great trader. I don't believe we have seen real share price action todate. People are making money off the naive I believe, just hold your shares and wait for the explosion, no one can take your shares unless you sell them. Sit back and enjoy the ride, I personally don't believe I will ever be invested at an early stage in a company with this type of potential again in my lifetime, so I have no intention of doing anything stupid, for me at least, like bailing out.

Please don't rely on anything I have said do your own DD.

cheers TP