Ann: April Newsletter, page-71

morning all,

only going from memory here - but, I am sure ICL just built a bigger Bromide plant in Israel - months back - I have discussed this with friends and I am still to understand why - why would you do that when Bromide is on the out?

Their answer was that big companies often believe their own stories - and, aren't in touch with reality.

Well - Bromide is clearly exiting the building and taking a lot of ICL revenue with it - along with Tencate revenue as well. (have a read of Tencate's 2015 newsletters - if you want to see a company gearing up for a revenue fizzle - that is a good example).

What has always mystified me is why big corporations wait until they have to pay $2 billion for something that has exactly the same product that they had when they could have got it for $.5 Billion - or less.

The only thing I can put it down to is that you don't look like a hero if you don't step into your Bombardier or Gulf Stream with a bunch of your little team - zoom to some other country and sign a deal with a lot of zero's on it.

Going with a small company for a few hundred million - well, if it doesn't work, you look like a dick.

But, if you do it for Billions and it doesn't work - then it is 'the economy' that went wrong - something like that anyway.

And, they could certainly get things cheap - at the right time, they could get my shares far cheaper than NC's price. Even now - sure, I have said my exit is at $4 and $8 - and, if someone came out of the woodwork on listing day and said $6 for the lot - well, you have probably got me.

But, - before that, before then - before all the goings on with listing, before long term military contracts are written, before Tempur-Pedic give us a zillion dollar contract -

well, I can tell you - a bid out of the blue for $4 - would make me think. I wouldn't really want to take it off the table ---------- but, with a company with very little revenue at present, lots of hope and really good news coming - but, not here yet --------------- $4??? - well, one would have to consider it.

But, no - they will wait. They will wait until the SP is $6 or $8 - then they will lob a bid - and, unless they go over the top - we will say no. They will up the bid 30% - we will say yes - and, we will have our $10 US.

They will then fumble around trying to incorporate it into their business - like elephants in a china shop - whereas, atm, they could fit it in like a finger in a glove - and, have a very good chance at a much lower price.

I have seen my partner involved in post deals that were huge - and they were a nightmare - because of the culture of the companies that paid through the nose - BILLIONS for basically a load of crap - flying teams in in corporate jets -------- paying billions for assets that were run down and had no hope of ever making targets ---------- mugs with big pockets - investor money.

Well - for me - AJX is up for sale -------------- come in mugs

The game is changing and the ground is shifting beneath these people - if they want to go and build Bromide plants ---------- lotsa luck.

From what I see, people do desperate things in desperate times. And, so do corporations - indeed, often, moreso.

So, if these people wake up one morning and find that the story they have been telling themselves for years is, indeed fantasy and not reality - then, they just might do some desperate things - and, hopefully, buying AJX at a massively overvalued price might be one of them ---------------------------- Dom day for me

Even if the offer is refused (and, it will be imo)- at least the offer has to be public - and the SP will instantly rerate to 'above' the offer - at least for a while.

That would be nice

Pinto