My first post in about a year.
(Those who don't know or remember me I was around when the earth cooled and when Liontown was in the low cents which was not too many years back really)
Firstly to all those that paid out on Tim and the Board I concur with the poster who called shame on that..... it was/ is very unwarranted and undignified.
They, the Board, have done an absolutely outstanding job for many long years growing the company and our personal wealth.
Hard work, luck in the resource we ended up having at KV at a time of lithium prices going nuts and great management, it has been a very unusual and fortunate series of events. The planets lined up indeed.
Secondly, I guess I understand the anger and disappointment, posters, holders, me, not wanting the dream...the ride to end is largely expected (not the abuse though) as it has been a very enjoyable and fruitful journey indeed. Unusually so.....
But like good love affairs (many are obviously in love with this stock) sometimes these things, even good things end.
But back yourself...another doubling of the share price would have been great but surely everyone can harness the same luck and wisdom they had in getting into Liontown and plonk some of the profits achieved here into other good safe and rewarding investments.
Honestly the bank looks a pretty attractive place to park funds atm!
And spend a crap load too...time to enjoy the spoils!! Ha ha! None of us know how long we have on this planet that much is true.....
Back ON whats happening at the moment remember WE don't know the whole story, to think we do would be the height of arrogance.
But be sure management have shareholders best interests at heart, they have done none of us wrong to date.
These are very uncertain times, there are tough economic headwinds and we don't know what start up challenges we would face or we will avoid if we handball the project to a take over suitor..?
The guys from Money Miners made this point and the point (about start up risks/problems) and that they (and I hear the big end of town here in Perth) think this is a great outcome...well that's what the fat cats are saying I hear...
Also consider tactics... this is a live auction...
Consider Tim may have accepted this offer as he had verbal indication that a better offer would not be coming forward from a second NEW party until the second party had seen what the final Albemarle offer was..?
WE don't know?
HOWEVER in any auction process to large extent fair value at THAT time is established....it is why so many people auction their homes.
There may be one or a couple of other parties yet to commit and this may be the boards ploy to start a bidding war?
But it is a high stakes game and right now we are in a live auction have no doubt about that.
Those who interpret the above article to mean Gina is increasing her lot please read the article again.
You are not alone on the misinterpretation, Financial papers have gotten it wrong now too (no fact checking) though the text is pretty simple and clear.
"The identity of the buyer was not known, and Euroz declined to provide details. However, fingers pointed to Australia's richest person, Gina Rinehart-who holds a stake in Liontown just under the substantial threshold of 4.9% - as the logical vendor ."
Vendor = seller.
(* NB: She could be increasing her stake, nobody knows I suppose, but this is certainly NOT what the article implies)
On the upside that begs the question who IS the buyer today?
Hopefully not Albemarle though I don't think there is anything stopping them doing some buying atm...it does take votes out of the system... but obviously its better for us if it is someone else....
Though I try very hard to never. confuse "what I want to be" with "what is"... right now nobody knows who's bought up big today in those off market transfers...not yet anyway.
We don't know but speculation will be rife about counter bidders. May there be at least one and ideally more than one and hopefully they come out of the woodwork soon!
There will be little scope for stealth buying, the 5% rule means bidders must show their hands pretty quickly.
I do know the shorts outstanding will have added to today froth, they need to get their books in order in a hurry I reckon..ha ha!
May they burn!
I figured take over capper was only a matter of time, anyone who read my past ramblings will remember my post that T/O rumours were coming out of the Western Suburbs about a year back. So this took longer than I personally expected.
Also when doing my DD on Tim, the company, his other companies etc it stuck in my mind that Tim had built massive wealth in companies assets before and sold them pre mine. Go back and read up on the sale of the African gold asset by Chalice in 2012 or thereabouts.
Think it was $114 M USD then so double worth nearly today, considering the stupid rate of inflation.
( Its important to research directors modus operandi....reading HC is not enough I read everything I can get from company websites to past company dealings if I am going to go big in a company investment.)
And later Tims Chalice sold a Canadian gold asset, same sold for a bomb.... I think there was talk of those going to mine too until Anglo came along with the right figure and it was "special dividend time" and a lot of happy holders from memory!
So I had in my mind this might likely happen.
And even the sure talk of going to mine etc....well that was all true...unless what the board considered a good offer came along, that was their intent and the card they played to get Albemarle well up from their first offer.
"First rule fo Fight Club Don't mention Fight Club"
They were always going to say "we are are going to mine" they were going to mine.....but what is it $6.5 billion dollars is a lot of reasons in the boards opinion to take any risk off the table and leave the potential start up dramas to someone else...?
AS Dave Richards said when a mate asked him ( on my request) would they ever consider selling..."I guess everythings for sale at the right price"
This is always true in business.
Sure I would like more... I would really like more and we may well get more...
Im sure the board are hoping for more too...
Its a live auction, let the best man (or woman) show their hand..!
In the meantime Peaceout Liontowners....and start planning your holiday! Ha ha!
PS incase I don't post again for another year its been fun I hope you and your families put the profits to good use!
Cheers Tretchikoff
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