Hindsight bias. We all wish we had bought more of anything after...

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mja

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21/11/22

13:05

Post #: 64893481
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Originally posted by NikolaL: ↑

no it does not. I am fully aware of the developments and I am not referring to the share price but I always referenced the MC. GMD MC back then was very low and ALK's balance sheet certainly could have supported such acquisition. Yes, ALK would have had to go into small debt but all that would have paid-off considering how big is current GMD resource and the new discoveries they are making just stone-throw from Ulysses.

At around that time there was distressed large seller (not going to name names) who was going bankrupt and would have sell his stake at all cost so ALK could have bought his stake and declare TO bid. A company looking to have multiple operations should look for such opportunities. Shares actually fell below 3c at that stage and I bought some at around 2.6c (going by memory now and can be wrong).
Are you saying buying an asset at 6c (let's say ALK would have paid healthy premium to get enough acceptance for their TO bid) that is now trading at 12c would have been bad idea?

And forget the DCN takeover by GMD - I am fairly sure ALK would not have gone down that rabbit hole and would have focused on developing Ulysses which by now that baby would have been about to pour its first gold.

NCM did exactly that with their Red Chris. A textbook of studying the target and wait when the opportune moment comes to buy it for a song. Many analysts thought NCM paid too much only to be left looking silly once NCM started drilling there.

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Hindsight bias. We all wish we had bought more of anything after the covid crash, be it property, shares, high-end watches, even crypto.

Last edited by mja: 21/11/22

ALK Price at posting: 62.0¢ Sentiment: Buy Disclosure: Held
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