PMH 0.00% 26.0¢ pacmag metals limited

This is a time requiring a Buffett mind set.Currently PMH needs...

  1. 434 Posts.
    lightbulb Created with Sketch. 47
    This is a time requiring a Buffett mind set.
    Currently PMH needs to increase by 50% to reach Entrees bid

    Why the discount
    Fear that the price of Entree will collapse in the next 12 weeks before the deal is complete
    Fear that the price of copper will collapse in that time
    Fear that holding Entree shares on the TSX will be onerous
    Fear of having a time horizon longer than a few days
    Fear that because short term traders and nervous non top 40 holders are selling that they must know something

    What would Warren Buffett do?
    He would hold because he isnt afraid of equity markets and applies clinical cold analysis to each decision
    He would say :

    Another bidder is possible
    Arbitrage players will enter as we get closer to deal day
    Entree is an excellent company which will be absorbed into RIO and or Ivanhoe one day
    We have a global recovery underway. It may be uneven but it is underway

    If you are afraid of this stock you should get out of all your resource stocks. Look at the anns from PMH, NCU, Entree, Ivanhoe and RIO in the past month
    They are all bullish and positive

    I expect my PMH to be worth AUD0.50 in cash and shares in the next 3-6 months
    Waiken
 
watchlist Created with Sketch. Add PMH (ASX) to my watchlist

Currently unlisted public company.

arrow-down-2 Created with Sketch. arrow-down-2 Created with Sketch.