“.........share price will be punished and we will see 6 cents pretty quickly.”
You don’t know that. That is just another opinion. If you are seriously buying this morning and believe what you have just said you would be trying to figure out who Hawkes Point are, when they gained their interest and how much they paid for it. Once you know these facts you can begin to guess at what price they might be prepared to accept “an offer” at.
Who knows Hawkes Point could be currently taking their shop up as part of this Wednesday deadline. We could see an improved offer.
I look in terms of value. If Hawkes Point let this offer pass I’d say they are confident of getting better value down the track. $85 million is already nothing for this project so if you are right which I don’t think you are and the price goes down to 6cents , it’s buy more and sit and wait again for the market to value the project properly.
The reason some people weren’t buying at 6cents was the same dilution argument that you have trotted out. Well thankfully some of us have the strength of our own convictions and can spot value where it lies and undstand that boards aren’t going to dilute exisiting shareholders out of existence to force a project over the line. The capital market is either ready to support the development or it isn’t and that includes other mining companies with cash or script war chests.
If we all listened to the fearful and meek, no discoveries would ever be made, no projects would ever get funded and this whole sector wouldn’t even exist. Thankfully there are a few positive, strong and persistent people that keep that industry alive against the voices of all the detractors. Esh
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