new target, page-57

IMHO I must say people have to be realistic about what price we may get. Sure we are at 50c which is a low ball offer to us. I would hope for a sweeter to at least 60-70c if another rival bid or sweetened deal from Hanlong comes through. Any more = great, but to me that would be pushing it.

Many want to only settle or see bids at the likes of $1.xxx or $2.xx , but keep in mind that while you're basing your price expectations on the total NPV of the company getting everything right. That's infrastructure done, everything in cost and under budget, permits issued, no black swan events, 35 mtpa, ramping up to 100mtpa etc etc. Unfortunately the market does not always work like that,a nd true to the value investing cause if this did eventuate then you would see those prices in the long run. But currently in the short run the market deems the value of this company at 1.4b, a short while ago we were at the low 30's /share, and we all knew what 'potential' SDL had. And it is exactly that - 'potential'. So many stocks would be worth alot more if we speculated that everything pictured so far would eventuate.

Until there is this 100% certainty or close to it though, is the reason why we are valued at $0.50 and not the $1,$2,$3 everyone is looking for. Try to remember and put that into perspective in regards to pricing expectations.

Think of it logically as a kid, you get offered to be sold a lemonade stand off the plan from a kid down the road. It hasn't been setup and hasn't started trading yet, but the business plan seems solid, all research into market prices and just how many lemons etc we may have via our backyard lemon tree are generally sound. We therefore expect it to be worth $10,$15 etc in many years time. Currently it's priced and selling for $2. You would not bid $8, $9 currently would you? I mean logically things look great and plans solid, btu you would offer a little premium at say $4,$5. But to pay $9 for the next 15 yrs of production? Hope that makes sense... but the value perception of what we can get NOW by some seems awfully unrealistic if you ask me. (no offense meant)