will there be a challenge ?, page-7

I sold at 23.5, the instant 30% spike in SP (imo) provides enough opportunity in other undervalued gold miners.

In my opinion the whole gold equity sector is heavily suppressed atm (gold at 1650, yet the HUI is hovering at 450 odd, it could well hit 550-600 as long as there is no long term down trend in POG). Once this suppression nears an end, I believe many a goldie will turn for the best. I, personally would rather take my instant 30% gain in NGF and then compound that by riding the gain of the 'gold sector' as a whole in another company, equally as undervalued.

There is no doubt NGF is a great deal at 27cps for Zijin, but as the recent buying shows, this deal will go through. The buyer at 23cps will be someone riding the arbitrage gain. You can see that millions and millions of shares have gone through at the 23, 23.2 and 23.5 stage, this will be someone buying at this level to offload to Zijin at 27. Exactly the same thing happened at GDO. If you want to see what happens post majority T/O, again track the GDO SP. It has just hovered at the 50 level after the 55cps T/O deal went through, as all buying interest on the stock market appears to have been lost.

I guess the way I see NGF for the next few months is not as a gold equity copany but primarily as an arbitrage trade, which will essentially provide a risk free 10% gain off the current SP when the deal goes through.

There is a very small chance a higher deal will come through, as there is a small chance the deal will fall through. I believe these 2 risks count each other out, as both are negligible compared to the deal going through at current prices.

I know alot of you guys see the chance of a higher deal as quite high. In my opinion there is absolutely nothing wrong in holding and waiting and seeing. As it just a majority T/O you dont have to sell anyway and even if you decide to, you'll make a 10% return in the next 3-6 months when the deal is settled... That is a pretty damn solid return if you ask me.