Analogue for SWF, page-8

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02/04/24

15:45

Post #: 73151166
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Originally posted by madamswer: ↑

"The company knocked back stakes offer at 17.5c/share, so what would he/they be willing to take? I am guessing it would have to be north of 20c before they would come to the table, it just comes down to if he is willing to suffer a (small) loss to get his cash off the table, or, after the 4+ years that he has been invested that he would want to walk away with some profit to show for the near $9m invested so far.
But north of 20c is a tough ask given you could recently buy at 13/13.5c!"

If you put yourself in the position of an industry incumbent buying SWF, you'll find that the acquisition arithmetic works at a price well above 20c.

You do the maths:

After harvesting the surplus capital (probably close to $10m worth is do-able) and eliminating redundant CoDB (at least $2m or $3m worth [*] is up for grabs, I reckon), an acquirer could pay as much 30c per share and still make it look reasonable.

All that is needed is for the SWF Board to be made to realise that the empire building strategy has been tried, and it hasn't worked, and that the obvious road to recovering the foregone shareholder value is for the business to be owned by some other entity.

Otherwise, SWF shareholders are going to be staring down the barrel of more years of massive opportunity cost, just like the past 3 years.

[*] Why a puny little business like this needs to spend ~$15m pa to conduct itself at steady state operating condition is beyond me. Senior executives aren't egregiously remunerated - ~$1m in total for directors and CEO + CFO - so, what most of the remaining $14m of CoDB represents I can't fathom.

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which 'other entity' do you suggest is going to buy it and why would another entity do better?
I'm thinking this one has got to break out at some point with new management.

SWF Price at posting: 13.5¢ Sentiment: Buy Disclosure: Held
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Last 12.5¢		Change 0.000(0.00%)		Mkt cap ! $29.24M

Open	High	Low	Value	Volume
12.0¢	13.0¢	12.0¢	$28.87K	231.3K

Buyers (Bids)

No.	Vol.	Price($)
5	314999	12.0¢

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Price($)	Vol.	No.
12.5¢	98611	1

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No.	Vol.	Price($)
5	314999	0.120
2	158001	0.115
3	418818	0.110
1	2	0.105
0	0	0.000

Price($)	Vol.	No.
0.125	98611	1
0.130	179669	5
0.135	400776	8
0.140	539664	8
0.145	204000	6

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SWF (ASX) Chart

Analogue for SWF, page-8

Sun Silver gets that drill to thrill feeling from high grade hits at Maverick Spring

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Buyers (Bids)

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Featured News

Analogue for SWF, page-8

Top Stories

Sun Silver gets that drill to thrill feeling from high grade hits at Maverick Spring

Sheffield Resources achieves milestone production, shipments at Thunderbird, WA

ASX200 dives as inflation clocks in at 4% – higher than 3.8% consensus

Nimy extends sulphide targets at Mons with new anomalies identified

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Buyers (Bids)

Sellers (Offers)

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