HCH 1.84% 80.0¢ hot chili limited

$?Bill in a ? Life mine, page-1174

  1. 1,291 Posts.
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    Yes, I agree it is too premature from a HCH shareholder point of view. From a third parties point of view, perhaps not, although how they would value those unknowns is unclear.

    I think a T/O offer is far-fetched in the very short term, but would be more surprised than not if nothing comes between now and Christmas. M&A activity is going to pick up, and contrary to what the market may think, some of these big miners have a sound balance sheet and are going to capitalize on low interest rates, shareholder understanding for high debt, and growing government support to kick the economy down the line a bit more.

    All speculation on my end, but the crux of my query is how the market is going to value the ME. If its close to Winu, then I imagine $400-$500mil is the start, not the end, of any valuations. Which is a 4/5 bagger from here, which doesn't seem right as from my experience investing is not as easy as coming in at the last minute before a ME which propels the company times 5...but my research seems to indicate that a ME close to Winu is not outlandish and therefore it may really be that easy and this could be a Steven Bradbury type scenario
    Last edited by LJohn: 29/08/20
 
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