summary and my thoughts so far...

Took me almost half the day today to go thru the ANNs and all the posts here in HC from yesterday. We dont usually get that many posts here in HC for SBL, so its good to see this. Also, a big welcome to all the new investors/traders in SBL, losts of new names here.

Would start off with a few comments of previous posts.

Aman,
In my opinion, its very unnecessary to raise a complaint with ASIC since you are now a shareholder again. I know you are not happy that you were mislead by Bill in your phone convo with him which lead to the sale of your SBL stocks a couple of weeks ago, but this complaint will only cause more problems and jeoperdise shareholder value. As you know, one of the key aspect of being a trader is to remove all emotions when you trade and stay focus in your current position to make logical decisions to improve your own shareholder value.

CashedUpBogan,
As you mentioned in your previous post, the thing that is holding you back is that SBL has bad mgmt but has a good resource. Since now if the T/O goes thru successfully, SBL will have new mgmt, and looking at Lion's share price its been steadily on the rise giving signs of good mgmt, shouldnt you also be considering of jumping on board? (and not giving such bad sentiment and doubt on SBL)

Here are now my views and summary of what has happened,
There are a lot of confusion in the posts here on why we should be rejecting the T/O offer, with different reasons provided. In my view, we should reject the T/O offer on the basis that the 2cents value is way too cheap. Its not so much so that SBL will be run by a foreign firm Lion, in my eyes, I would rather prefer Lion to take over SBL as the current SBL mgmt has proven a lack of performance. In all, I would rather see Lion manage SBL than Bill and co., BUT not at this price of 2cents. (Also note that Lion is an investment holding company incorporated in Bermuda (as stated in the ANN), showing signs of a hedge fund type firm which means they will most likely be aggressive in improving the company's value).

So why would SBL be worth more than 2cents in this T/O? Firstly, since Lion has mentioned themselves in their own ANN, SBL holds great potential for deep underground mining for gold in which SBL has not taken advantage of yet (and SBL has not announced this to the public in a big way so far), and this would upgrade gold resource re-estimates, so the value should be more than 2cents. Secondly, fixing a ratio of 1 to 34 shares in Lion now for consideration of 2cents means that shareholders are burdened by foreign exchange rate risk, regulatory risks for those who invest using their DIY superfund, possibly additional fees that shareholders would have to pay to make international trades transations etc. These reasons should be reflected in a premium on top of the 2cents being offered. Thirdly, in Lion's ANN of the description of SBL's company profile, they did not mention a single thing about the manganese find or even the potential future discoveries of more manganese finds, clearly this was chuck to the corner and should add more value to the 2cents being offered.

But so why are people selling the stock at 1.6, 1.7 cents etc on Friday?
I have a suspicion that most of these trades are done by Infinity to keep the price low and hence not a good representation of the true market value on SBL. Think about it, if you are an ordinary shareholder like you and me, why would anyone be selling the stock below 2cents. I know some of you had mentioned that some investors didnt want to deal with a foreign firm, but this doesnt add up as the T/O has not been approved yet and we have till December until the T/O is finalised if it goes thru, leaving a big gap for some action to happen with very little chance the share price will move downwards and a big upside for the price to go up more or stay the same. The reason, I believe Infinity is wanting to keep the share price low is so they could hedge againts the risk that the T/O offer might not fall thru and they could then re-bid at a higher price but this higher price would be lower since the current share price is kept low. Btw, Asiasons does not own Infinity anymore, see the link below

http://www.finanznachrichten.de/pdf/20110928_181034_5EC_461B45CC2331144548257919003125A3.1.pdf

These guys are pros. Asiasons wouldnt still own Infinity if they have links with Lion as this might pose conflict of interests and legal issues. The funny thing is that, a couple of days after Infinity got dis-owned by Asiasons, Infinity made the $5mil placement offer to SBL and now we have this T/O offer by Lion. If you look at the trade sales on Friday, most of the stocks changed hands at 1.6, 1.7 cents, which means Infinity would have still made a profit (the placement was 1.5cents) while keeping the share price low. The total volume traded on Firday was about 67mil shares, whereas Infinity 1st tranche of the placement gave them 133mil shares, unfortunately giving Infinity quite a good fire power in keeping the SP low. In addition, the timing of the T/O offer couldnt have come better (on the 14 Oct) when the 2nd tranche of the placement will be taking place on the 15 Oct, giving Infinity another 133mil shares to apply the breaks on the share price just in case if they need them.

In summary, I do support the T/O by Lion but not at a price of 2cents. With Lion's involvement, they would be able to conduct deep underground mining for gold in which SBL alone will not be able to achieve. I think Bill and co. didnt really had much of a choice but to take this offer at such a low price (hence they supported the T/O offer) because if they didnt had that $5mil placement from Infinity (remember that SBL capital raising back in March was short of $4mil) or even more cash, they would be struggling with burning out of cash. SBL had raised capital several times now back to back and they cant afford to have another capital raise being done which will dilute the share price even further and showing bad sentiment to the market, hence their next best option is this T/O offer.

As for Stuart Murray leaving the board, I suspect that he felt what was going on was againts his moral ethics and made the decision to leave so he would not bear any legal risks if anything goes wrong.

Interesting times. There will be more ANNs coming up soon within the next few months like who the 2nd new board member from Infinity is going to be, the quarterly report, the bidder’s/target statement from Lion etc. Who knows, something else lurking in the bush might creep up too.

Good luck all!