I come from the position that anything that looks too good to be true normally is too good to be true so am watching from the sidelines to see how this develops.
What I do see is that at this point most of the options will be taken up and the company will get more cash flow in before the 60 days of the MOU expires due to all this gerat news.
If the MOU does not eventuate into funding then what has EMR got? Most of you will say still a great property, but if it is so great why were the promote rates so low? They got 80% of the deal (or 72% depending on how you read the 80% of 90% piece)for funding 100%, barely a 1.25 promote rate whereas most good deals are 1.5 to 2:1 rates.
I also look at what success most Aust companies have had in the USA over the past few years and most of them have had dismal success. Even the best like STX, SAE and PSA that have had good solid success are still suffering market caps below their asset backing values.
As such I believe that gems like this only come about through personal relationships or other such deal. While the Managament look solid I just can't tell if this is solid or not.
EMR Price at posting:
0.0¢ Sentiment: None Disclosure: Not Held
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