what a poor shareholder supposed to do

Hi,

This current bid is an insult to EKA's shareholders

If the company is successful then two things seems to happen (this applies to any company)

a) The management wants to skin the shareholders by alloting themselves very generous options etc

and if (a) does not happen (which is true for EKA so far)

b) a Predator wants to enjoy the fruits.

The poor shareholder takes all the risk and does not get his just rewards (for every successful company, the shareholder perhaps has invested in 2 to 3 unsuccessful companies). Classic Darwinism - 'Survival of the fittest' or should I say 'Survival who has either clout or money'

Anyway let us analyse this current Bid.

AUT Sharemarket as at Yesterday was $1.717 Billion

AUT's only assett is 16365 net acres (around Sugarloaf area)

EKA has 1521 net acres in sugarloaf area and then 5221 net acres elsewhere.

So based only on EKA's sugarloaf acreage, the value of EKA share should be (based on AUT's market value and 237 M EKA's shares)

= (1717m) * 1521) / (16365 * 237m)
= 67 cents /share

This ignores all the other acreage which EKA has (a net of 5221 other acres).

Assuming a nil value for all other EKA's acreage, the starting point of bid should be around 67 Cents.