Galaxy game changer, page-8

Low ball takeover offer will not be accepted for the following reasons:
The management not long ago resolved to close SVD negotiations through JP Morgan because it believed there was no appropriate valuation offer for SVD. It will be hard for management to recommend a low ball takeover offer to shareholders. We can still receive a low ball takeover offer but it will be rejected and it will boost the share price to above $2 and open the door to a bidding war. We can look at Kidman resources for example which is trading above Wesfarmers offer.

The decrease in the short position is a tell tale sign for a leaking ship:
- Someone is looking at Galaxy seriously and don’t forget Galaxy said that negotiations are still ongoing with strategic partners without JP Morgan and my guess management is annoyed from the JP Morgan lending its shares to shorters and manipulated the share price heavily to the point where it created headache to the management especially we are about to confront them at the annual general meeting.

-The shorters have realized that the share price is about to recover after it reached the bottom and this quarter will mark a significant recovery. The yield optimization process looks like it is completed and with it increase production and decreased cost. The Global passion is arriving on the 16th of May and it has been confirmed will carry 15,000t of spodumene to an overseas customer.

I am confident management would like to see share price
prior to AGM and most likely release some good positive news prior to the meeting, resource upgrade, completion of the optimization process, supply agreements, progress on James Bay and SDV and much more.

Someone is anticipating corporate activities and positive announcement, closing short positions, buying shares and for all of the above, I think the share price will recover to $2 and then the company will receive the takeover offer with 50 percent premium which will take us to around $3 plus.

We wait and it is worth waiting and accumulating.

My thoughts.

Cheers, Sydney