One other thing you should consider, from the cosy position of the current deal.
When I left to go on holidays, ESG's price was in the low 60s. Whilst I was away, the DOW had a major correction. US debt ceiling concerns, then resolution, then drops of over 500 points on the DOW...
So, if not for this deal, what price do you think ESG would be on, if they had not put this base under their share price? 40 cents? 50 cents?
Reserves delays, no reserves from Tintsfield data, then a market correction, starting from share price in the low 60s...
While the market was crashing, ESG could've said to the market, 'by the way, there will be no reserves booked for the Hoskissons seam yet, and so just a reserves upgrade from the other two seams'. How well would have that gone down with the market? Would you even be still holding ESG if that were the case?
Really easy to lob grenades from the outside. Not quite so easy if you are in ESG's shoes.
Yaq
ESG Price at posting:
78.5¢ Sentiment: Buy Disclosure: Held
