It's worth taking a look at my post on the LRF thread. LRF is a major CUO shareholder and there has been a very recent broker report produced that is probably in response to the big stake built in LRF by a hedge fund. The hedge fund is now agitating, via a special general meeting requisition, to get LRF to take exceptional steps to drive the unit price up closer to the net tangible asset value. LRF is resisting the approach.
Interesting comment in the broker report is that the hedge fund has probably taken "short" positions in the underlying stocks to balance its "long" position in LRF = net neutral, and therefore is fully exposed to the NTA being brought up.
What really interests me now is that if the hedge fund choses to close out its shorts at some stage, there could be significant buying pressure on those stocks eg. CUO, AGO, RIV, JML, OEX and a bunch of others including TGF. This all starts to make sense to me now as to why some of these stocks have been so weak in the face of a bull market in resources.
I'd be very interested in others thoughts on this. Also, it seems to me a very good time to be buying LRF!
regards
DF
CUO
copperco limited
