People make money off your greed - so dont be greedy!

Discussion in 'Stocks & Derivatives' started by SilverSanchez, Apr 14, 2012.

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  1. finicky

    finicky Well-Known Member Silver Stacker

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    For the few interested in Linc Energy (LNC).
    On re-reading Linc's announcement I've had second thoughts. All we've got is a Chinese hand-shake I think. This is notoriously unreliable on the ASX. Query just emailed to Linc Energy:

    Hello,

    In today's announcement, Peter Bond says, "..Mr Peter Bond, Linc Energy's Chief Executive Officer, said,
    "I am very pleased that we have reached agreement on the commercial terms with GCL."

    Can you please tell me whether there is anything whatsoever legally binding at the present stage of the agreement? Would there be anything to penalize or stop GCL from withdrawing from the arrangement - as did Xinwen and Yanzhou after the multiple agreements formed over the Teresa tenement sale?

    Is this agreement in any way stronger than the ill-fated agreements formed with Xinwen and Yanzhou?
     
    finicky, Apr 16, 2012
    #21
  2. Dirtbikepilot

    Dirtbikepilot Active Member

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    They fell pretty drastically after shooting for the stars. Doesn't appear to be able to hold any of its upside.
     
    Dirtbikepilot, Apr 17, 2012
    #22
  3. SilverSanchez

    SilverSanchez Active Member

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    Meh - the deal is pretty good even if the market dont care right now
     
    SilverSanchez, Apr 17, 2012
    #23
  4. finicky

    finicky Well-Known Member Silver Stacker

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    Yeah, gaps get filled they say, but I've never seen one filled as fast as this one; and check out the volume. A lot of holders must have treated it as an opportunity to exit and some day traders would have got singed I suspect. Market values the announcement at zero because there's no true substance, and Linc has form. You can't believe an MOU or equivalent from a Chinese company - Linc itself has had this demonstrated twice when they thought they had agreements with Xinwen then Yanzhou on the sale of a significant coal tenement.

    Then to say the deal values Linc at $4.50/share - pull the other one. Look you can say "We want $120m cash, or you can say "We want $120m in the form of a placement of our shares at the rate of $4.50/share. That means you are arbitrarily pricing the shares at $4.50, it doesn't mean the buyer is valuing them at that. The buyer is paying the money for Linc's underground coal to gas, gas to liquids technology in a joint venture, if it ever happens, not just the shares.

    [​IMG]
     
    finicky, Apr 17, 2012
    #24
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