Re: Dave and Board !
in response to
by
posted on
Jan 21, 2015 12:09AM
MTXORFAS you state "So, in other words, we should want GG stock to do well between now and then, as the more it's worth, the more our stock will be worth when the deal goes through?"
Exactly right provided you plan to cash out. If you plan to stay invested in Goldcorp for the long term then perhaps it really doesn't matter so much - you will have 0.1755 Goldcorp shares per share regardless of the Goldcorp share price. Following is how I calculate the therorectical value of the Probe buyout at various Goldcorp share prices.
Goldcorp Stock Price | Value of Probe Buyout | |
$19.50 | $3.60 | |
$20.50 | $3.78 | |
$21.50 | $3.95 | |
$22.50 | $4.13 | |
$23.50 | $4.30 | |
$24.50 | $4.48 | |
$25.50 | $4.66 | |
$26.50 | $4.83 | |
$27.50 | $5.01 | |
$28.50 | $5.18 | |
$29.50 | $5.36 | |
$30.50 | $5.53 | |
$31.50 | $5.71 | |
$32.50 | $5.88 | |
$33.50 | $6.06 | |
$34.50 | $6.23 | |
$35.50 | $6.41 | |
$36.50 | $6.59 | |
$37.50 | $6.76 | |
$38.50 | $6.94 | |
$39.50 | $7.11 | |
$40.50 | $7.29 | |
$41.50 | $7.46 | |
$42.50 | $7.64 | |
$43.50 | $7.81 | |
$44.50 | $7.99 | |
$45.50 | $8.17 | |
$46.50 | $8.34 | |
$47.50 | $8.52 | |
$48.50 | $8.69 | |
$49.50 | $8.87 |
If Goldcorp share prices drop back to around $20.50 where they sat a month or so ago we are looking at about $3.78 per share. If the price of gold blasts through the $1300 level and Goldcorp shares shoot back up to 2012 highs around $49.50 (very unlikely in my view) we would be looking at $8.87 per share.
I certainly do not view management as having sold out shareholders. They have made me a lot of money and it is only fair to say thanks for that. We can only assume that this was the best offer on the table. The price offered is lower than I like and I may choose to vote no, but all that has happened to date is that management has given shareholders a choice and hopefully kicked off an auction to the highest bidder. If no other bidders come forward than this offer is all the market is willing to pay at this time- shareholders as a group can take it or leave it.
My thoughts,
Pilgrim