RED 5 & SLR NEW ENTITY VALUATION:

RED 5 AND SLR MERGER VALUATION 2024.pdf
Hello to all the RED 5 contributors. I have been watching and reading you individual threads for some time.
I am not one to judge or generally become to involved with stock market communications as I am new to investing only a couple of years now.
To let you know I look to value investments with a longer term holding position , by no means a trader. Redd 5 accounts for the majority of my portfolio ; Therfore , I thought it prudent that I join hotcopper and your group to discuss my view on the upcomming merger.
As I am new to using a forum I will outline my position / approach.
Red 5 for me as in all my new investments I take a business approach. In the recent case of the proposed merger I am taking a purely business tact as this is my background having owned and run small buisness.
I have only accounted for Book Values (Shareholders equity) in the PDF created.
Full consideration and empathy has been considered to our potential new shareholders at SLR. I have been following their posts and legitimate concerns. It has also been my main objective to find reasoning and rational as to why the two entities should merge.
To put it quite simply my outcome is this:
Both entities seem to starve going forward when looking at a simple Price to Book Valuation, remember we are not Tech stocks. Trading Gold / Silver / Copper / Food commodities etc comes down to good fundamentals not Fomo trades or Governmet sentiment go green by tech etc.
The result is we need to attract new and future investors who seek our valuations and are looking to safe investments to ride through the upcoming world termoil. Key takeaways, from my Pdf if it uploads correctly, Why are we merging and where will it take us. Outcome i see the merge entitity with a book value of $0.22 may not seem like a lot but as a start and a P/B ratio of 2.5:1 red Shares would be worth $0.55 that is just the start day 1 after the merge is announced.
I hope my work is helpful and appreciate any feed back.
First time contributor and your sincerely Rational1.