Following the issue of the near 200 page White Mining merger document there appears little upside in the stock in the shorter term. FLX is in a very strong sector so should still trade in the $2.40 - $2.80 range.
The reason for the stock not continuing on up is the raising of $50 million via a share placement and share purchase plan. The merged entity will have debt of $39 million. The estimated $360 million of investment required is about twice Felix's market capitalisation prior to the merger.
Felix estimate that profits will be $10 million for the year ending 2005, rising to $81 million for company year ending 2006.
FLX Price at posting:
0.0¢ Sentiment: Hold Disclosure: Held
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