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Westfarmer to take over Kidman at $1.90, page-91

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Ozyoioi

749 Posts.

462

02/05/19

15:16

Post #: 38377608
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Originally posted by Darkstone: ↑

To all those wishing for a TO, its worth reading the KDR board. They are not happy campers. (Nor am I particularly since I was looking to put money in there but used it on PLS and GXY instead mainly because I couldn't see them getting finance any time soon, darn! - still nice little return on PLS today.) Given the low level of this offer, when they don't even know the full size of the resource, it seems to me that the last thing we would want on GXY right now is a TO offer. Even waiting 6 months would be expected to result in a higher offer. Still, given the KDR HC shareholder resistance being voiced it is quite possible that this is just the first round. Either way it won't get to the value the resource should have in a couple of years.

WES have played this well. It is interesting how the price was conveniently locked in between 120 and 140 for the last several months (which is why I was looking at it as a trading stock). Kind of feeds the conspiracy theorists in the sector, but also interesting how KDR resisted the worst effects of the longer term down turn - possibly due to a certain party's gradual accumulation of their 17% holding (or is it actually less? - not clear from the discussions whether they have the 17% or have 17% of the votes). Of particular interest is that they were not prepared to wait until they had got 18%, so they might have a reason for the timing. Now let's see, they have 4 weeks to do due diligence, etc, ..so I wonder why they wanted to move at this time rather than wait another few weeks until they had accumulated another 1%. What do they think is going to happen in say 4 to 8 weeks that made them move now instead of later?

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Great analysis mate.

"What do they think is going to happen in say 4 to 8 weeks that made them move now instead of later?"

I suspect it is event risk more than a specific 4-8 week time frame. Price is suitably low, sentiment is negative short term, in a 'hard to deny' long-term growth sector.

GXY Price at posting: $1.52 Sentiment: Buy Disclosure: Held
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0 Great analysis

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