The following is my opinion and not a financial advice or a recommendation, do your own research. It is my response for a request for the average buy price of my CTP shares.
Hi Robin,
Thank you for your time and effort in supporting the CSA.
I have 450,000 shares in Central Petroleum. My average buy price is irrelevant to discussions. Negotiation 101 says walk away from a low ball offer, otherwise it becomes an anchor point to ongoing negotiations. This is precisely what Macquarie bank has done, this tactic is so pedestrian that it is outright embarrassing to see people falling for it. With the available information, Macquarie does not deserve the time of day or any engagement. Unfortunately, Macquarie have established an anchor point of $0.175 per share in the minds of most shareholders, outstanding for them, dismal for shareholders.
I am happy to dig out these negotiation principles and forward them to you.
Whether I bought in at $0.09 a share or $0.70 a share is irrelevant, what is relevant is the value of the share price based on GSA, exploration results, and prospective acreage. On available information, $0.80 is the minimum offer I would entertain. It’s clear that many CTP Hot Copper contributors have far to much time on their hands, Macquarie’s offer does not deserve 5% of the submitted posts, it is outright embarrassing that people are so heavily engaged following Macquarie’s low ball offer. RC has constantly stated that he would not be nickel and dimed with regards to accepting any offer for CTP.
If anyone was offered 25% of the value of their house by Macquarie Bank, they would:
a) be insulted
b) Deride Macquarie’s offer to all their friends
c) not engage in any further discussions about the merits of the offer as it is utterly ridiculous
I do sincerely appreciate the time, effort and believe that CSA continues to play an important role with regards to any takeover offer of CTP.
I will be posting this email on Hot Copper. If you don't want any response posted, I will respect that.
Wishing you and your fellow team a Merry Xmas and a happy new year.
Kind regards,
Robert
My post from 11 November 2016
(Apologies in advance, writing this on my iPad)
RC will not sign any GSA until the government deals with the gas pipeline operators abuse of market powers. The outcome of the commonwealth government inquiry will be known by mid-December 2016, which is likely to significantly enhance the value of CTP taking net profits from $40-60M p.y. to $60-80M (after completion of NEGI). 8-10 times earnings is not an unrealistic share price (ignoring the upside potential of the remaining acreage). This would undoubtedly be the best time in CTP's history to make an opportunistic offer. I will be guided by RC on this one and no hard feelings to the potential take over party as it never hurts to make a low offer given it sets an anchor point for the simple minded.
Expand
