g'day Jesse.
Conditions precedent can cover many things, so we probably may not find out, as the formal agreement would be commercial in confidence. If not, Tony would be able to advise.
I suspect WEG may have thought they were the only game in town, which it appeared to be the case at that time. Some brilliant pro active thinking (& then action), by management achieved that deal, which further enhances my view that Pluton has first class management & as I posted back when I started following PLV; I've made most money from companies with high quality management & lost most money with companies with poor management.
I now spend a lot of time before buying a new stock going back over 1-2+
years of reports/announcements & anything else I can find that will help me understand the quality of the management.
I further came to understand that you have to keep up with management’s ongoing moves. Things can & do change sometimes, as I found out to my loss with Oxiana. I think they started to believe they were infallible & proceeded to make a HUGE mistake that cost shareholders plenty. So when any company I am invested in makes a MAJOR change, I do a complete clean sheet DD & then decide to hold, buy more or sell.
Such was the case with this move by PLV to re acquire that 50% of Cockatoo. In this case it was fairly easy to decide to buy more; so I did.
I still can’t believe the market hasn’t responded to that deal. Basically they have brought in $17.2m new funding (pre sale) & only needed to repay $3m to WEG, PLUS that 50% of Cockatoo! How that isn’t worth something, much less multiple millions $’s imho, I can’t understand.
Then again, I’ve been in the market a long time & I’ve seen many irrational situations. I just wish I wasn’t in my bear cave, as I would have seriously loaded up with PLV, as I used to do in my favourites in the old days.
But I’m happy with what I have now & look forward to that $1 party (I well remember that great Oxiana $1 party some years ago).
Cheers,
Ned.
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