I can...
The constant shilling and expectation that Galaxy will pay 20c per share for A40 is... Nauseating.
After today's announcement, if those parties in the AFR were knocking at the door, I am sure when they sobered up, sat down and thought it some more they would realise that the shares will collapse when they come to market which would devalue their investment unless they brought in somewhere around 5 cents or so.
Then, they would have thought about if A40 will find itself in the same position on the next quarter or so and realised.. yep, it's a given. The company is doing desperate deals as reflected in today's announcements because they have no choice. They have their pants around their ankles, and at the same time so does any forward plans to bring Cowan Lithium to IPO. I mean c'mon seriously... Who would invest in them during a 20c per share IPO with the same management at the helm after this debacle and the one that will undoubtedly follow if A40 go down the path as represented in the AFR announcement.
Time to wake up and smell the flowers. You're invested in a stock that as you put it need the good management of Galaxy to right the ship. It would be nice to have A40 in our collection of assets, but then if you guys want to strike a deal you are going to need Mark to roll out Cowan to make it really worthwhile.
I am happy to sit back and waive A40 off as they jump in their mini with Mr Bean driving and meet them at the next ditch they will undoubtedly find themselves in, and then the shills trying to save their poor investment decisions will be back wanting the 1 Galaxy per 30 A40 I've suggested previously.
Here are my point adjustments to your post.
- GXY have cash and you could be in a company that is debt free
- GXY have proven management
- GXY management have been where you are now before, and have come out of it successfully
- GXY already own a blocking stake in any TO which will keep many potential suitors away - like WES type take over partners, not finance type vultures
- GXY are building a global business with James Bay and SDV
- GXY are building more than just hard rock business with relation to SDV - and whilst you are at it, check out some of the threads in GXY about the "potential" of their brine operations
- GXY already have strong off-take partners
- You are selling your product below contracted rates.
- Operational efficiencies to be gained from reduced management bloat
- There is no guarantee that the $20m from OCP Asia and Keshik will be enough to resolve all issues and get to cashflow positive.
- You may consider it a loss in the short term, but at least you will have confidence that GXY - if they take over the business - will be working to make a return on the investment as lithium is their core business.
- It'll probably be a lot less stressful
- GXY might go up in price off the back of this going through.
I don't want to come across mean, and realise that I can do at times, but I think that so many A40 holders are jumping on to Galaxy like Jack and Rose expecting the company will acquire A40 at a premium.
Galaxy are not listed as a DGR, and therefore are not a charity. The company will do what is best for it's holders, not A40, and with that they have a level of expectation upon them.
As Kenny Rogers said..
"You got to know when to hold 'em, know when to fold 'em
Know when to walk away and know when to run
You never count your money when you're sittin' at the table
There'll be time enough for countin' when the dealing's done"As I said, maybe Galaxy might consider walking away, dumping the shares on open (sheet for the holders) and then come back later on when this expectation of 20c you claim they have no choice to make... is gone.
Things can always get much worse.
Time for an adjustment of expectations?
I think so.
