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Strategies & Market Trends : The Ego Forum -- Ignore unavailable to you. Want to Upgrade?


To: Amark$p who wrote (10593)9/16/2011 9:08:26 AM
From: Amark$p  Read Replies (1) | Respond to of 12175
 
Looking at the MDR.v Fib retrace:
box.net

Seems to confirm near term price targets of $2.00 and $2.50 are feasible with Mine Permit and BFS respectively...

What I would really like to see are some large volume share crosses in the near future, around current share price level, to get over $1.75 trendline. That is, volume over 400,000 shares for a day or two above the trendline should get the party started.



To: Amark$p who wrote (10593)9/16/2011 11:20:19 AM
From: hubris33  Read Replies (1) | Respond to of 12175
 
If you see any material** fault in this analysis, please advise...

Well the only thing I see is this.....

Any public company that comes in a bids $5 for a company whose shares are trading for under $2 in the open market would get drummed out of office and rightly so. Any suitor who pays a premium of greater than 50% over market cap will be loath to prove why such a premium was needed or justified absent a competing bid.

In the last 5 years I have never seen a deal close "on the numbers" or at levels that investors believe the shares should be sold at. Usually these deals go off at a premium to the 20-day weighted moving average share price. Those premiums usually run in the 25% to 35%.

The real answer would be in a detailed analysis of recent mergers & takeovers. Of course the most recent is CMM,v with 4+MM ounces. Would be interesting to see what the market is paying for "gold in the ground?"

Also I would not call diesel generators "low cost" given that if inflation hits as more debt is monetized, the CL can be expected to be well above 100/bbl and ops costs negatively effected. With these low grade (<2 gpt) projects I suspect that if we see cost inflation [steel, rubber, fuel], as we did across the board in 2006-7, then margins will be severely effected and the poorly run companies fall by the wayside.

imho

H3