if cash received is levered to SP then why didn't CUU shareprice shoot up when teck gave cuu cash for 75% backin?
The answer that you will find acceptable depends on your views as to whether you believe markets are efficient or not. Perhaps do some reading on the theories of efficient markets.
You see, I clearly believe you can find inefficiencies in certain markets and securities pricing, if you want to do your homework, sleuthing and alot og head-scrathing alot while connecting dots. ;)
In a nutshell efficient market theory assumes that a share price is always "correct" and properly correcting as all market participants have access to all the same information all at the same time so its a "level playing field" environment where pricing errors quickly get corrected by the equally-informed and equally bold capital in competition. Hogwash!
The theory has some merit in some highly followed, highly global names with hundreds of billions of institioinal money ready to scoop value from any pricing ineficiencies.
Massive pricing inefficiencies are in force with CUU if you believe it will produce a mine, imo. Institutional money will not move before a production decision is made. In fact I would contend that most institutional money wouldn't move until production was imminent. I don't know of a lot of people who could do ANY investment analysis much less analyse the merits of investing in a pre-production-announcement jr mining company. The market in general is clueless or otherwise repulsed to the idea of doing any indepth analysis on what is really happening in an unpromoted jr miner, certainly not following the worst crash and re-crash that the jr miner industry has ever seen. Canadians are shockingly risk adverse to begin with so there is no market per se, IMO.
Then you have the 'market efficient' guys here who will try to have you believe that there are no mis-priced jrs at a bargin, certainly not now, surely the SP didn't move on receipt of a JV and $20 Million cash because, as I heard, because of the claim of an anonymous poster on an anonymous investment chatroom that the management would likely burn all the money away and dilute everyone. He said any responsible mgmt should instead put the company into hibernation. Golly, you just find the smartest and most honest people on the internet, eh?
