Just got in to observe the posts and the news releases...
This is prove that many traders and investors have no idea on what they are doing in the business of equity trading. Let me repeat a post that i had put out just a while ago.
It is absolutely critical that many investors do not pay slavish attention to the price of the stock. If you don't have some idea of what the value of the stock is, the price information is useless.
Money is made on the arbitrage between PRICE and VALUE.
The price information is, of course, easy to obtain. But investors will need to have some consensus on what the UNDERLYING VALUE of the company is and how the company will add value through sales, acquisitions, exploration projects in order for that price information to be any use to investors.
Get real investors....this is a HUGE DEAL no matter how you look at it. I prefer future cash flows in the current cash strapped economic environment. It looks like we are getting a substantial cash injection of 500 million and then ongoing royalty payments for 20 years totalling 2.5 billion and people are unhappy. You have got to be kidding me...REALLY.
This is not an MOU nor heads of agreement... It is indeed locked in. Adani is a major player in the Indian government's plans to supply their enormous electrical grid. Adani is still desperate for coal and is looking towards Indonesia and South Africa now.
What we will probably see tomorrow is the shares changing hands from traders to astute investors. Hopefully many understand how good of a deal PB has done for the long term and ongoing benefit of LNC. I doubt that though and the only one's reaping the profits would be the funds and savvy investors. With another 2 tenements to be sold in the next few months, the shares will be back to its highs.
Further to the above, PB has also indicated that LNC has the flexibility to sell the royalty agreement to monetise it into cash now, or hold it and receive the full benefit of 20 years of cash flow [in a telephone interview].
Hopefully, newsflow will be much more forthcoming this evening and tomorrow.
Congratulations to all holders.
LNC Price at posting:
$1.86 Sentiment: ST Buy Disclosure: Held
