I'm back a day early as I had a fresh idea to share. Try this one on and see if it fits.
There is still a scenario here that could come to the floor tonight or Monday.
KWG as we know has assembled a team to try and help plot their future. We must assume they are working diligently in that direction. With this in mind and NN and the BOD all tied up an opportunity has presented itself.
KWG has two fresh evaluations and many companies are going to look at this much as we the shareholders have, and conclude there is value here beyond 19 cents.
Here’s the scenario I think is possible.
Knowing there is value here and that Neil and the gang are out of the business another company comes in and makes a friendly bid for KWG and extends the offer to SPQ shareholders. First they buy in the open market on Monday morning to get all the cheap shares gathered up and push the price to say 20.5 cents. This effectively ends any further shares being tendered to Cliffs.
Sometime later in the day they announce the takeover plan for Spider and the friendly take over of KWG.
Cliffs is suddenly confronted with a much different circumstance and is forced to either capitulate or play. How high the price goes depends on the intent of the new party. An aggressive fund looking for a flip in 6 months or a year or a resource company seeking this as a long term play?
Here’s the sweet part! NN and the BOD have already sold their shares to Cliffs so they will not participate in any further price increase. We the little guy may get 25 or 30 cents but they will go home with the 19 cents they liked so much.
So today I’m hoping that Cynthia Thomas and the gang at KWG are working away at the finishing touches to an announcement planned for sometime tomorrow.
This is to me the only reasonable scenario we as SPQ can hope to see play out.
Please comment as you wish and share any other suggestions you may have.
All opinion on my part.
Thanks everyone!
Regards A
