Some pretty big volume in DDH yesterday and still plenty of sellers in SWK. Don’t understand why you would buy DDH. I’m not a great believer in OXT however you may as well gobble up the freebies.
The independent report will be interesting. My layman’s view is that drilling should be worth around 50 cents and whilst we are getting OXT freebies in truth we are actually paying for them via a reduced pricing and subsequent allocation in DDH.
I’m sure everyone is working hard to justify the .35 for drilling as that is how these things go in small cap space. The saving grace is there appears to be a bit of upside in DDH post merger.
My view in order to maximise shareholder value OXL should have been demerged first then drilling taken to market on the back of an improved performance.
SWK Price at posting:
34.5¢ Sentiment: Hold Disclosure: Held
