the problem with cre, page-13

Bazz,

the normal way a takeover plays out is.Someone makes an offer.

Someone else says that's too cheap and either there's a bidding war,or one or both the offers lapse.Normally it's all happening within a few weeks.

Normally,if there's a biding war,then both parties end up sort of 45/35% each and a few undecided.
Someone pays thru the nose and the other party cashes in.
Nothing happened in the first month,so Stone got my shares and FML got the money from them and i got 20% more FML.
FML were set up to cash in if another superior offer came in------IT DIDN'T---so was I and DB

FML got 82% straight up and didn't increase it's offer.
Stone was only interested in buying shares cheap and wasn't after a takeover,no matter what was said in public.
Maybe it's after a FREE CARRY WITH FML MANAGEMENT.

I don't think that's in Focus's plan.

So now FML has to make those minority holdings untradeable with few willing alternative buyers ,of course,all in the name of reducing company costs.FML's in control at it's price.Minority holders may not like or be able to afford funding the cash needs of an expanding CRE,where FML will have the available cash for those cash calls and can always pick up lapsed options to insert more capital.

The simple answer was CRE was only worth $70m before the rains and the $40m fundraise that went into it after,that got mainly spent on the rain re-instatement and that was when it was already producing at 100koz rate AT A LOSS.

Unlike FML the many tons of tailing CRE has aren't worth trucking 30km one way for milling profitably.

What no-one knows for sure,is whether STONE,in whatever form is just a paper shuffler after a leveraged profit,or a serious investor.There has certainly been much paper shuffling in Public filings that stone has made in Canada Hong Kong and here.Substance is another matter.

Cre is like a '55 holden outside a wreckers gate.Is it worth just scrap value,certainly not collectors value and can only change with the right input.

82% is sold to the scrap merchant's mate at scrap value and as it's being dragged inside,you've got someone outside yelling,but i bought that left wing and it still owes me money.A few others have left some possessions inside also.
Everyone is being given their chance to take market value NOW.Scrap value
5.8c currently,10% difference to FML's current price.
The Merchants mate reckons with the right effort it could come up real nice,but points to its current SCRAP state,although he has smothered all the moving parts with penetrating oil and given the motor a quick checkover.

Have three guesses at what the outcome will be,when the money lenders say,where's my security for that loan and only ONE buyer to sell your interest to?

DYOR+DYODD Hoping other goldies report smartly,so i can swop funds into FML in the timing gap.

DYOR+DYODD