"the money you want to pay for pre-producer should be less than the market value of producer, am I right?"No you're not. At first I appreciated an alternative opinion from you, but you clearly don't listen to, nor reflect on the responses of other posters.
@nick10245 stated
"If someone was to buy PLS they would be paying a lot more than $11bn" to which you replied
"yes I agree with that", but you then say that any LTR T/O price
"should be less than the market value of producer". Your own (very) short post is internally illogical.
The obvious point is that both LTR
AND PLS are way undervalued on a DCF basis, P/E ratio, growth trajectory, % NPV basis or however else you want to value them. So whilst a comparison between stocks is useful for
relative value, at any point in time, it is completely incorrect (and perhaps even disingenuous) to say that the LTR T/O offer is 'fair' based on a comparison with either the latest or 52 wk high trading price of PLS stock.
The point is the latest traded SP of any stock is not necessarily it's fair value, sometimes it's way over valued (this is where "genuine" shorting comes in for genuinely bad stocks ... NOT LTR!), sometimes fair value, and sometimes (as has been argued clearly by very well informed holders of LTR) well undervalued. Further, my tiny holding in LTR has no real weight on it's own, and my purchase decision is a calculation not only of the risk of the Lithium market generally, and project / company execution risk, but also the opportunity cost of SP risk in the short / medium term (i.e. games played by BEOT, institutional investors, shorters, T/O etc) and even long term if an opportunistic T/O is successful and full value is not realised. (Thankfully we have TG et al to stave off such attempts!). A T/O offer however is for control the whole company, and that does and should come at a SIGNIFICANT premium to the market price, depending on the strategic value of the company / project / assets. In this case, holders are overwhelmingly of the opinion that this is the case, and are well led and supported by TG / TO et al.
Put another way, if PLS were to offer itself up for sale at the current SP / MC ($3.80/$11B) to ALB (hypothetical for the sake of the argument) ... ALB shareholders would do cartwheels ... and then apologies to PLS shareholders for the legal theft that had occurred.
I think that PLS is a screaming buy right now, and I hold PLS as well, and have been buying more. If ALB were to offer to buy PLS at $5 a share or $15B (~30% premium to current SP) I would be responding just as strongly as I and others in this forum have to the opportunistic attempt at $2.50 for LTR.
Apples (lowball T/O offer for LTR) aint Oranges (current SP of PLS) you know ...
(20min delay)