why dension shouldnt take over omc

Been a while since I posted but thought this is worthwhile.

This is risky but I bought some OMC at 1.16 two days ago. I like them because:

- Denison who are bidding (cash 1.15) for them has been pretty unsuccessful in convincing the shareholders to hand over their shares - they have had to increase their bid from 1.10 to 1.15 and still only have about 31% of compamy with several extensions to the deadline.

- Two funds have increased holding to 25% of the company just two days ago at about 1.16 average. They obviously see value in blocking the bid.
Scoping study late last year showed that the company would make $100m /yr over 6 years profit based on a U price at the time of $55/lb. U price now $95/lb and there's talk it will go to $140/lb.

- Take over price of 1.15 values the co at ~$175m - so obviously based on increased U price is way undervaluing the company.

- Scoping study was on their deposit in Zambia - very mining friendly country in Africa.

- Note that the deadline for the Denison bid ends at the end of next week 5.00pm Adelaide time (13/04/07). By law - unless there is another bid by another party - they can't increase their offer any further. That said, i personally think the bid has been holding the s/p back and they should be trading much higher. There are other U companies out there trading at much higher prices which don't even have a resource yet.

Anyway, thought those that don't know much about OMC might like to hear my thoughts.

Regards
Summertime