Cheers for that manabouttown
I have my reasons for my recent comments re takeover, which i will elaborate here.
People may agree or not, this post is my opinion only and NOT investment advice.
Will start with some known facts
This project is the highest % helium play on the planet.
Helium is a finite resource, repeat, finite!
This is the greenest Helium play on the planet.
The loan from the US government was to prove up stage 1, to increase reserves and certainty.
I think we all agree on this so who would want this asset.
As I mentioned this is a finite resource and considering its uses, is therefore a strategic asset.
This play has always been about the Helium, everything else is background noise.
Yesterdays news was indeed excellent news, 3 new MOUs with 3 global players. I put a buy order in, didn't get hit, ran to $1.60 then started to fall. Removed my order and eventually bought at $1.48, don't win them all.
What yesterdays action did was tell me what it occurring but is only my opinion at this point.
If stage 2 was/is going to be financed, this is precisely what bankers would want to see, especially those big names.
This takes a cap raising out of the equation.
Imho we have reached a crux point, where decisions have to be made.
The current SP of $1.45 is 18.54% below the recent raising price.
Assumed most of those shares went to instos and knowing what blood sucking leeches they are, if they where manipulating perhaps 10-15% below raising price, think we have gone past this point.
If that is the case leaves an attempt to takeover the company.
1,690,952 shares traded in the last 3 days plus 287,939 still on the sell side equals 1,978,891 sold or on the sell side.
Assuming about 36 million SOI, this equates to 5.5% of all shares on issue while SP has gone down 10 cents.
A tad under 1 in every 20 shares have been sold to lower sp on great news, hmmmm, don't think so.
We have reached a point in my opinion that I call the desperation zone.
If you want to launch a takeover, the sp must be lowered as much as possible so that when our knight in shining armour swoops in and offers a low ball offer, enough desperate shareholders sell to recoup losses.
Seen it many times, stock in a months long unexplainable slide, then bang, here is generous offer under the circumstances.
The fact that Stef is in the US currently, has presold 65% of a strategic finite resource as previously mentioned and may possibly be in talks for phase 2 funding the timing of all this reeks of takeover.
Framed a market for a bit of fun because I could be way off the mark.
18/10 Notable due to existing holdings and links to Chinese government.
28/10 US government entity due to $40 million low interest loan to prove up stage 1 and BLM facility having depleted resources.
4/1 private entity, perhaps one of the MOU holders or perhaps an old Pretoria high student.
6/1 usual insto behaviour to get retail holders to sell and increase their holdings.
All just my opinion, not investment advice.
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