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bobbyY

549 Posts.

51

02/08/18

08:07

Post #: 34681244
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Originally posted by Nek007 ↑

Wombat 74 mentioned TO.
In my view, the machinations resulting in the slump of KDR stocks appears to be that of a potential acquirer, or potential partner of KDR, that would benefit in negotiations, from a reasonably low KDR SP.
Most of us in HC believe in the value of the reserves, and confident that the SP should be > $2.00; and a number of analysts have also indicated the same.
An acquirer by strategically swamping the market with shares, let us assume by shorting 100 million shares, would cost the acquirer $100 M approx. If an offer is made in the region of $2.50 for KDR’s shares., it would be probably be accepted when the price is hovering around $1.50. The acquirer could then pick up all KDR outstanding shares for $1.25 billion.
If the shares were not manipulated and in the region of $2.50 or more, an acquirer would then have to pay, let us say, $4.50.
The difference between $4.50 and $2.5 = $2.00 x 500,000,000= $1,000,000,000 Less 100 M (shorting expenses).
Why would not a potential acquirer attempt this, when there is no Regulator, or law against shorting?

I could be wrong, but I am holding on to my shares, as I think lithium is the future.

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The ASX will remain a lame pathetic wood duck providing an unfair and unequal trading platform until forced to live up to its responsibilities .An animal of the brokers and financial institutions they will remain a cash cow for some and a risk to retail investors.A job for the ACCC but dont hold your breath.

KDR Price at posting: $1.47 Sentiment: Buy Disclosure: Held
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0 Great analysis

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