Relative values from Alvin the Idiot

This is Mr Lincoln Augustus, first second cousin of Holymagimon.

Many pleasant greetings from the familymons and sistaladymons from Jammicca. We have just finished the fishing and waiting for the mamma to be cooking the wahoo in the curry. We are sitting back, talking the talk , drinking the Red Stripes and partaking of some very excellent Jammicca Numba One Spejil Blend that Holymagimon has produced as usual. It was an excellent crop this year, that is for sure.

Alvin the Idiot has strayed onto this most informative Eden site as he was following the ramblings of Mr Jake0002 and has been reading some excellent postings by the big fat moose and the little child from the nursery. All very interesting, we are thinking.

There has been a lot of talk of relative values and cross trading and all sorts of very bright things by some very clever people here and the family is most impressed. The world needs such clever arbitrators, that is for sure.

However, in our simple minds, we are most confused. As such, we thought that we would be posting our thoughts. Please do not pay too much heed to them, for we are just humble Jamaicans, and do not have the level of insight and expertise on trading that others here have. We are not directors of companies nor are we financial experts, nor are we smart. Our only expertise if any, is fishing and trading in the Numba One.

What we don't understand is this. Tasman owns 43% of Eden. The Board of Tasman have repeatedly stated that one Tasman share is worth 1.3 Eden. Repeatedly.

So even Alvin the Idiot knows that one Tasman share equates to 1.3 Eden shares. And Alvin is the world's Numba one idiot on, that is for sure.

So why are Tasman shares worth less than Eden, we wondered.?

We posed the question to Rev Moshe Goldblum, the reverend at our Church and it is his opinion (after due consultation with the Lord above) that sometimes arbitrating opportunities come by that bypass the attention of the wise men who abound. It is so fortunate that Alvin is an Idiot and noticed this discrepancy entirely due to his total lack of IQ.

Baboo Runchik is of the opinion that this arbitrage discrepancy will sooner or later sort itself out.

The point we would like to make is that the directors of Tasman have absolute control and a final say in the eventual pathway of Eden. Nobody can control or take over Eden without Tasman approval and concurrence.

Absolutely no way. Irrespective of what some very knowledgeable people keep chanting like some insane graveside mantra. Perhaps these changers have bought some cheaper version of Numba One substitute that has addled their thoughts, and that is very bad. We could put in a good word to Holyand we are sure Holymagimon will most certainly help them out with a better grade, if they can afford the Numba One.

When will Tasman reach fair value?

To understand this, you must understand that the Tasman directors will never undersell Tasman in any takeover. They will want to make a big a gain for themselves through their holdings in Tasman and in Eden.

So the only way that anyone can make a play for Eden is by a direct market offer for Eden. Eden will be the plaything, not Tasmam.

And nobody can take over Eden without Tasman approval.

And if all goes well, there is no reason for Tasman to agree to let Eden be taken over, especially with all the inherent potential blue sky.

So Eden will only be taken over when the Board of Tasman feel they are happy with the price offered....probably years down the track.

And at that point, to maximise returns to all Tasman shareholders, and the Tasman Board, we would expect Tasman to issue its Eden shareholding do to Tasman shareholders on a pro rata basis. So at the point of takeover, each Tasman shareholder will receive 1.3 Eden shares and become an Eden shareholder.

And when the dust has settled, the Tasman shareholders will still be holding their Tasman shares with its mineral assets.

So arbitrage opportunities slip by once in a blue moon and that blue moon could very easily be obscured by some very silly postings as to relative values. We believe Tasman is a fantastic arbitrage opportunity as a long term hold to profit from Eden. But we are not financial experts.

Blessing of the Lord
Sir Lincoln Augustus, LLb, Dip Ed, PhD and holder of many more very revered degrees