Snorky, I liked your posting: "Imagine, a Take Over offer of $1.70 in October & now 32.5 cents in April!I wonder if management & the board ever find themselves lying in bed at night staring at the ceiling pondering what might have been? "
But when I thought a bit about it....
No-one likes to catch a "falling knife" but we forget why management turned down the buy-out offer a very short time ago....
The article below(late 2012) makes very interesting reading:
Especially the part in the conclusion: "Do you think China might have an interest in inflating the size of its stockpiles to push prices down? And really, does it matter if they have two million tonnes or three million tonnes today?
“Whatever the Chinese say that stocks are, in the end they still need copper.” George Cheveley, metals and mining portfolio manager at Investec Asset Management
Tomorrow they need more, a whole lot more, even if future economic growth “only” clocks in at an annual 7.5 percent compounded. Over the next 5 years, China will probably consume 50 million tons of copper. So there is a major strategic shortfall in the copper market from a Chinese perspective”"
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This is the reason that management turned down $1.70 and I think if they were offered the same deal today they would turn it down again because nothing fundamentally has changed - China is sitting on a mountain of foreign currency and would much rather sit on a mountain of copper - not to mention all the new power stations it is building and the many millions patiently waiting to switch on a light.
DML Price at posting:
34.0¢ Sentiment: Buy Disclosure: Held
