cracking deal lol , page-27

I don't know a great deal about the ROC business but on the surface ROC shares seem to be less discounted than HZN shares, especially with today's price action in both companies. A few weeks ago, before the announcement of the proposed reverse merger, the situation was flipped the other way around. Of course, HZN carries more project risk than ROC but that also suits the risk profile I am seeking with HZN for the position it is taking in my portfolio. Looking at the consensus target prices for both, HZN is more discounted according to those valuations.

The takeover might be legitimate and might end up being in the interests of current ROC shareholders. It might be smoke and mirrors designed to thwart the HZN takeover. We will need to find out more about it.

ROC shares have re-rated since the merger announcement, I believe, on the basis of improved future cash flows that arise from the merged entity with a well weighted balance sheet looking forward. HZN shares, at the price I paid today of 0.355 seem to be more heavily discounted by the market. Even if the merger doesn't proceed, I think HZN shares are still worth considerably more, especially given the deal locked in with Osaka Gas that de-risks the PNG project significantly. My gut feeling (and that is about the true extent of my analysis and in-depth industry knowledge) is that HZN won't have trouble finding development partners or offloading the whole project for a good profit.

I've changed my sentiment for ROC to none because, really, I don't have a view of this stock. If I owned it I might be taking profit today.