""(and dont wish for an early STO takeover as a generous 40% premium over the 1mth VWAP of 86cps = $1.20 - is not that good for us. We have next week to come with the shorters massing and the 70s returning.)""
db76,
I do hope, like you that STO will wait and let ESG Management increase the sp while we are in recess.
IMHO, before they'll do a move on us (STO), they will give us a serious workout/workover first. And, in conjunction with a few brokers, they will be capping and shorting the stock to get it down and keep it to a level they will be happy with, and possibly, around the 70 cents mark.
It will then be ready for the picking and they will come out like the good Samaritans and give/make us an offer at around the 40 to 50% premium based on the 30 to 40 days VWAP. Note that I said 40 to 50%, but usually while all the uncertainty about the USA market is hovering upon us, 30 to 40% is the best one could hope for.
I have seen all this happening before. Believe me. And there is nothing we can do about it. It will only depend on the Management if they are going to accept the offer or rejected. Usually if we will get another offer from a third party we will more than likely succeed to get a higher price.
If we don't, and STO is the only one in the ring, I hate to say what could happen.
This is my honest opinion based totally on my previous experiences.
Maybe if we could get some concrete evidence that we have orders in place for our gas, and not just MOU, it may be different. But until then, we are still at the market, and STO's mercy.
Good luck all.
Buddy
ESG Price at posting:
83.0¢ Sentiment: None Disclosure: Held
