It's not really worth zero now. If it could be purchased with no strings attached, the ponds would be worth something to RIO, but the tenement is worth near zero, the IP is worth zero, the abandoned plants are worth either zero or pretty close to it in scrap. considering buying the company would come with obligations etc, it's worth less than zero.
I think holders who saw this as being worth a billion dollars or more are just struggling to wrap their heads around how it can actually be worth less than zero. The (assumed) value was in the plant working, the method being genuinely viable, and the resource. All that's really there which could be used as the excavated ponds, unless someone wants a bakery and a gym in the middle of nowhere, but I doubt they're worth a few million dollars...
As I said earlier in this thread and was laughed at for, a large company taking a position does not mean much. We can now see how true that is. They bought in at a premium to the market right before the whole project collapsed into something worth less than nothing. As I said earlier in this thread I've seen it many times before, and the only thing exceptional about this example I can add to the list is how quickly it happened after the deal was made.
ATL was absolutely, utterly, mercilessly roofied and raped.
This is a fantastic example of how a large, well-resourced company can make a huge, multimillion dollar mistake which some random guy like me could easily see was terrible. Often, these companies have the same false sense of security in their own analysts that we saw in AGY shareholders here, and the analysts themselves believe in themselves because they have their qualifications in finance and were given a high-paying job with a fancy office.
Plenty of lessons to be learned.
AGY Price at posting:
3.4¢ Sentiment: Sell Disclosure: Not Held
