Haha Fullfare funniest thing ive read in ages..... how true
So Mr King Wally
Here's the problem i have..... you see Fairstar offered Golden West Resources a 50% premium for their shares...... now by going on your logic unless a company shoots up to past this value the share holders accept the deal???? uhhhhh NO!! Shouldn't the share price of gwr on this basis at least go up to the 50% premium mark just as all normal take overs??
No!! Why??? Because this case is special..... it is fully scripted at the moment so fully dependent on Fairstars tumbling share price!!!! Saying i will give you 7 Fairstar shares or 3 dollars in this merger situation is a very different thing. As issuing so many shares causes the price of Fairstar to drop, as this increasing number of shares is not backed by any increase in market capital. Its quite simple if the government were to keep printing off money non stop would the value of the dollar drop and inflation hit the roof???....... YES!!! so what will happen if Fairstar keep "printing off" shares??? will there value drop as well??? hmmmmmm.......... make sense!!!
Ending with a share price of 27 cents!!!
As for this comment "Marbo has told us nothing we did not already know" so you know the share price will drop to 27 cents on the current share price and still want the merger to go ahead!!!! hmmmm are you involved and have something more to gain from this than we know......... ie ending up with control of the very valuable Willuna west iron ore deposit????
GWR Price at posting:
0.0¢ Sentiment: Hold Disclosure: Held
