You are quite right with your observation,if you accept the take-over in all script from AGO then you rely on the the AGO shareprice.
If you sell now on the market you have your cash in the hand and made a nice profit.
But you probably invested in GIR to get the most profit possible and probably are a medium to longterm investor since you put your money in a junior explorer.
Keeping that strategy in mind you may have to re-think your situation and the risk reward strategy you have embarked on in the first place.
AGO is a fast growing company with NO debt and plenty of Cash in the bank and more being added every month. It sells iron ore at a cost of around $45 per tonnes where the price they get for it is probably close to $145 per tonnes.
They are ramping up production as we speak so even more money is flowing into this company bank account.
With the analysts forecasting high iron ore prices for the next few years at the least AGO should do very well and hence the share price should increase.
If you sell your GIR shares now you will not have that future upside.
So you can sell now and take your cash or you keep your money invested in one of the fasted junior iron ore explorer on the ASX
good luck
jojo
GIR Price at posting:
$5.03 Sentiment: LT Buy Disclosure: Held
