nice post Gooch, I largely agree except perhaps point 1. There has been an assumption for many years that producers will pay big bucks to replace their reserves. However, shareholders have demanded change... dividends instead of production growth. Even TRY with a small reserve life won't pay much more than market rate.
This speech from an acquirer created quite a stir at the Denver Gold Show discussing M&A... entrenched managers who care more for their jobs than shareholder value. Ask yourself, for example, whether AMX could have been better managed during its 90% slide.
The assumption often made on HC is that share prices will fall to a price where an acquirer can no longer resist... but what if managers of the target company aren't interested and care more for themselves than shareholders?
Anyway, these are the comments... skip to the 15 minute mark
