Bouhr, the question is , what is SDL worth with funding and what is it worth without funding. With funding, I think it will be a monty in the future, distant future.
Without funding or a JV, it is not a project. It is Jungle with some drill holes.
That is the point and why the Sp is 26.5. It is a lot lower than I expected at this stage and is almost priced for total failure of any further option to move forward.
The chart pattern is really oversold IMO. And on low volume down, showing an absence of buying due to nervousness. A lot of the downside is priced in.
I also think that should the Hanlong bid fail, an alternative will present itself and even a JV IMO would see a higher price than what we are seeing now.
It is all about whether this project is "Go" or "No". At the moment, the SP looks like a risk/reward greatly favouring a total "No".
I doubt that is the case. IMO.
SDL Price at posting:
26.5¢ Sentiment: ST Buy Disclosure: Held
