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33.3¢ echo resources limited

As of now I am all done on my position, good buying today IMHO,...

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philh9

8,734 Posts.

220

13/02/19

15:09

Post #: 37424897
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Originally posted by BobbyKennedy: ↑

Agree. NST is carrying a very high valuation right now and whilst it's the darling of the ASX gold sector, there's a risk that it'll come back down to sensible valuation territory when the enthusiasm wanes a little. So if they're going to move with a cash and scrip offer, it's surely in everyone's interest to do it sooner rather than later... unless they're deadest that they'll continue to grow at rates that justify this valuation.

And the longer that EAR are left untouched, the higher the risk (to NST) that we too receive fair valuation which pushes us much higher than today. So if we move north while NST moves south, the deal will look more and more unattractive to EAR SH.

I doubt my timing is that sharp but it could happen soon. Before debt financing would be best for NST so they can finance the development independently and not be encumbered by unwanted lenders.

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As of now I am all done on my position, good buying today IMHO, was a bit sticky, but long enough in the water gets a bite or two, healthy little pause.

Little Southern Star in the making maybe

Cheers
Phil.

EAR Price at posting: 21.5¢ Sentiment: Buy Disclosure: Held
11 Upvote

0 Great analysis

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