Each daily drop in the IGO share price is making the offer to SIR less and less attractive. I said on the IGO threads that nobody is going to get SIR cheaper than the current offer. I also said I expect another suitor will emerge. I am accumulating IGO on daily drops purely for Nova and the synergies of a current producer with an emerging one.
I have traded in and out of SIR over the last few years on tips from brokers that it was a legit $5 to $10 stock. Its been good to me despite the lowest entry I had was around $1.85. I had been looking for an entry back into the mid $2's as the SP fluctuated up until production. It didn't happen and won't now. If nothing else, the IGO offer puts a line under the SIR price. Yes it may retrace to $3.30 but that's it, because from there it will follow the Nickel price like it did in recent years.
I doubt many current SIR holders would cash out of IGO, most have done the long haul chasing Nova and want to benefit from production. I haven't forgotten past assumptions that being low cost in the current low price environment will take SIR to the top of global Nickel producers as the higher cost operations fold. Its a cycle, its at the bottom, there is much upside yet to come.
Congrats to the long term holders of SIR. Its not time to abandon Nova just yet, takeover or not.
SIR Price at posting:
$3.78 Sentiment: Buy Disclosure: Not Held
