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CEO.CA members discuss high-risk penny stocks which can lose their entire value. Only risk what you can afford to lose.
@AllanGot a sneaky feeling the $DDC shareholders will want Washington Group to have a chance to do due diligence as it sounds like they could get an even higher bid. The board is likely going to hear from big shareholders saying they would like to see what Washington Group can come up with. The Washington Group has run the numbers and look to be coming in with a pretty attractive all cash offer. Looks like $DDC is going private.
@JamesKwantesCheck out the waterfall slide $DDC took beginning in mid-February, when it was trading for $13.50 Canadian (Washington's takeover offer is for US$13.50) and declined for several sessions in a row. Retail investors tend to shrug at #diamonds but this hostile bid shows a continuing interest in diamonds from wealthy and successful groups -- now the Washingtons but also Lukas Lundin, Anglo-American, renewed interest from Rio, etc -- because the business is very profitable. Wouldn't be surprised to see many of the diamond pubcos catch a bid Monday, there aren't a lot of them. $NAR for example has a JV with $DDC in NWT
@ekimIf $DDC ends up private, it will make consolidation in the area more plausible. The likes of Stewart Blusson, private company and conglomerate Rio tinto don't necessarily have to disclose the details of a deal. The likes of a Canadian Diamond company with a Canadian Board of directors has to show all the goodies.
@ekimNo doubt in my mind that the 'disgruntled' group of shareholders are involved at some level with this buy out offer from this private North American entity. Whether it was determining a fair price or being a firm yes on the deal to entice other investors to follow the herd. $DDC#diamonds
@ekimWhat are the odds that $DDC threw a dart at $KDI to try and swat this whole aggressive takeover tactic? I would say very low...but the coincidence of an after hours news release on Friday night by $KDI followed by these news releases on a Sunday? Just one thought. #diamonds
@ekimNo coincidence that $DDC delivered a strong sales forecast on Friday? Normally you want to look at under promising and over delivering...but if you are forecasting a bid for the company...you want your guidance to be on the bloated side. Wonder if that is exactly what we have witnessed.
@ekim@90bigpicture you talking about $MPVD ?? Patrick Evans sure is a confusing fella. One moment he says that MPV is interested in M&A...but specifically states not necessarily diamonds. The next he part of a shareholder revolt group for $DDC demanding changes...the next he is having an interview with BNN telling the world that Ekati and Diavik are in their sunset years, and approaching the end of their mine lives. Is he somehow involved in this deal now?
@JamesKwantesA further twist: $MPV CEO Patrick Evans is also a director of Archon Minerals $ACS, which is run by Stu Blusson. Blusson is the Ekati co-discoverer (with Chuck Fipke) and owns the portion of Ekati -- about 11% -- that $DDC doesn't. Fipke sold his share of Ekati to Dominion for $67 million a few years back. Archon also owns about a third of Ekati's Buffer zone
@ekim@JamesKwantes I remember that now. He wasn't a director until a couple of years back. Blusson and $DDC 's current board/mgmt do not see eye to eye or shall I say dollar to dollar. Money talks. $ACS by definition is a Zombie company...except for the fact that it owns part of an asset that $DDC will be developing and has a director that loans money to it to keep it going until it gets a big payday.
@ekimMining stock rallies with no news and gets halted by IIROC....Rumours flying all over the map with $DDC and $SWY and don't get halted. No point in halting something that should be halted..that would just be a waste of power. Must halt things that kill's peoples hopes and dreams.
@nicholaslepanAnybody have any thoughts on the offer for $DDC, management at the company is citing that offer is coming from an inexperienced investor in the diamond space and that the deal undervalues the company. Just when I thought diamonds were a dead end.
@ekim$DDC 's latest news release includes all the comebacks and reasoning from Washington Group of companies...but not much substance from DDC. It is very strange...almost like they expect people to read the first one or two paragraphs and not deep dive into the full news release. The comebacks from Washington Group are very, very well done.
@ekimList of synergies for a $DDC and $SWY merger? - Reduction in overhead...Stornoway has an insane executive team...like 11 VP's or such. That could cleaned up easily....maybe all the VP's want a merger to trigger a severance pay out. Renard production could piggy back onto DDC's rough diamond sale distribution. DDC's cash could pay off some of Renard's debt. The deal would definitely be one sided IMO. Just a question of whether DDC wants to navigate that swampy lake before it can firm up on a pure Renard operation...maybe buy the stream. ...and to top it all off...one big investor in $SWY is offiically in harvest mode -- "Our fund has a seven-year life. At the end of 2016 we were done with investments. We are now in harvest mode," [Orion portfolio manager Douglas] Silver said when asked why Orion was selling the portfolio. He said the sales process was launched at the beginning of January." $SWY has plenty of reasons to push a merger...many more then $DDC
@HRA-CoffinThe way $DDC is trading there will be a deal with someone. Shareholders are pricing it in. Management can act all offended but I think the large institutional shareholders will string them up if they don't to a deal now. And I agree with @ekim that $SWY doesn't look like that much of a prize to shareholders compared to a clean cash exit.
@JamesKwantesIf Washington doesn't own any shares, why does he want to buy the company?
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@ekim@JamesKwantes sounds like it is 100% or nothing. Maybe by having no shares...he has more legal flexibility to say publically what they have been saying. If you think there is a white knight (Rio or such)..you would think you would want to try and get an up to 5% position anyway...Maybe he doesn't think a white knight is possible.
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@ekimQuestion is whether Discussions between $DDC and $SWY were serious enough that they put Matt Manson at top brass and that is why Brendan Bell was shown the door at the end of January. Chicken egg theory.
@JamesKwantesRe De Beers jewelry arm, there is sure a lot of activity in the #diamonds sector of late as well as interest from majors. Also a major focus of the latest Resource Opportunities which went out early this morning. Diamonds one of the "empty rooms" at an otherwise bullish PDAC. Opportunity IMO $DDC$RIO
@JamesKwantesWould sure be nice to see $DDC remain in Canadian hands, given the historic assets and the way in which Canada helped bust up the De Beers cartel with the 1990s discoveries that laid the foundation for an industry #diamonds
@JamesKwantesOn Washingtons, fair point @tommy - Kyle anyway, don't know about the old man. But was also thinking of other players with that comment, eg Rio Tinto. With 60% operating ownership of Diavik, they must also be in the mix here (even if they don't show up in the articles) $DDC
@JamesKwantesHearing that North Arrow Minerals CEO Ken Armstrong will be on BNN tomorrow at 8:30 am PST with the inimitable Andrew Bell. Some renewed interest in the space as the $DDC takeover talk continues #diamonds$NAR