Yup, Weiss is going to buy up stock... accept the offer to guarantee the minimum for LG to increase the LG share price then dump their LG shares on the SGX for a nice xx% gain. After Signature Metals was at about 60% LG ownership the price had a price breakout from 88c to about $1.25 in a matter of days. There has been a retracement from that high from the Signature holders selling their LG scripts (Weiss included) on the SGX which is putting a lot of downward pressure on the LG price at the moment but it's still holding up against all the sellers from Australia. I think that after the dust settles from the SBL sellers, then we'll see a similar sort of spike.
I'm assuming that the price will spike again once the Signature sellers dissipate and then couple that with good news coming from the Ghana mine of Signatures (increase of 60% gold recovery), the CGT takeover and the excitement should lead the LG share price north of $1.25 in the coming months.
Note that Weiss and another mob (can't remember their name right now) helped LG get control of Signature. Us little guys are pawns. In my opinion, there are some short and long term advantages to LG acquiring CGT. Each situation is different for each trader/investor but it seems like current CGT management has botched the long term view of CGT so riding the LG takeover might be a silver lining to the dark cloud known as an undervalued CGT share price. Either way, I'm confident that if Weiss is helping LG... CGT is as good as sold.
CGT Price at posting:
13.5¢ Sentiment: None Disclosure: Not Held
