Hi all
Jumped aboard SHN (now ARH) a couple of months ago due to what I consider to be massive upside if and when a deal is announced. Due to the 'if', the market has not factored in the huge potential gain in share price yet as there is considerable downside risk if the deal is not forthcoming, or not favourable to ARH. Nonetheless, I am a betting man (albeit when I have conducted thorough research) and think the odds are on the side of a positive outcome.
Now, my logical mind tells me that if a deal is signed (which I think it will be) there is not much use in having unfavourable terms for ARH as this will cause the market to react negatively and realise that there is no use in investing in the project, the result of which will make it virtually impossible to raise funds to develop the project i.e. if there is not much money to be made by investors they won't invest and the project won't get off the ground. This scenario doesn't benefit anybody, so I guess that if a deal is done, then the terms will certaintly lead to share price appreciation.
In short, my prediction is that a deal will be done, the terms will be favourable (leading to share price growth). The unknown, as far as I'm concerned, will be just how favourable the terms will be i.e. will the share price go up 10%, 100%, or 300%?
Any thoughts....hope I made sense
Regards
Doyle
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