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Thanks for clarifying that.

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wombat777

11,249 Posts.

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30/07/19

21:07

Post #: 39770029
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Originally posted by eastwest101 ↑

From my understanding of Nords YouTube in late June. he wasn't critical of SLR management per se, he just made the point that the successful takeover of DRM resulted in a re- valuation of SP and market cap and then the index huggers and GDJX reweighting added a whole lot of demand for the stock. He called it overvalued because of this "dumb money" that ETFs and index reweighting causes but that's not strictly speaking SLR management's fault.

If the market is dumb and sends your share price ahead of the fundamentals then the logical response is to pick up assets/additional ounces using your own inflated scrip rather than using cash to grow ounces. That's what we've seen here with SLR picking up EGA.

The most canny acquisition are often made in the early part of a commodity cyclical upswing.

By the way those YouTube vids are great Nordesmic - lots of stuff to unpack from those presentations. I get a lot out of them.

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Thanks for clarifying that.

EGA Price at posting: 38.0¢ Sentiment: Hold Disclosure: Not Held
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0 Great analysis

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