Gullable, I'm not advocating that anyone do what I'm doing.
I'm trying to make the most of the bad hand that's been dealt to me. I figure that if I can trade the WNI shares through HK, then I might be able to salvage something from the wreckage. Somewhere in the documents it makes it clear that they're tradeable under either exchange, but you have to nominate which one and there is a fee for transferring from one to the other.
Their billionaire shipping magnate backer is getting the WNI stock at 60cent HK or about 7.5 cents AUD, so I figure the WNI price isn't going to drop significantly below that level.
Once WNI have total ownership I can start seeing those broker valuations of Marillana being worth a billion pa suddenly appearing on the WNI website trying to push their market cap up to the billion AUD that BRM once was. Of course, it will benefit them to avoid burning out the printing presses producing trillions of WNI scrip to pay for the rail and port development.
I'm taking a huge risk, but in my mind I figure these guys were too smart for BRM management and Australian regulators, so hopefully they'll be able to extract the best terms - in future deals etc for their stockholders. Of course, we scoff at how they've dropped the BRM (and their own) stock value by 75%, yet I see that it was a means to an end - ie. picking up BRM for a lot less than what it's worth for longer term gain. Once they have 100% ownership, I can't imagine that they can afford to piss off their billionaire backer too much by making their stock worthless- after all, what would it achieve?
I do have a concern that they may continue to try to take over other juniors which will cause unneccesary dilution.
Anyway, I'm rejecting to the last minute in the hope of a better deal, but have pretty low expectations that something will eventuate. I wish other holders well and that they adopt what they believe is the best thing in their interests without feeling traiterous because they're bailing out rather than going down with a sinking ship (if it starts taking on water).
BRM Price at posting:
$2.15 Sentiment: None Disclosure: Held
