LUN to buy EZM - thoughts??

Steve Young wrote:

"Jerry" wrote

I only reviewed the web just as you did. I too would have preferred EZM to
remain separate, their P/E is better and IMO the Zinc production would help
them much more than the combined company.

Exactly! Very late Winter I thoroughly reviewed about a dozen companies which
had significant zinc resources / reserves. One of those companies was Lundin.
I recall at the time I felt they were old, stodgy and though doing well enough
financially, they didn't have the new project zip I was looking for. They were
cornered with a lot of old stuff and mines coming toward closure. That's also
what I thought about Breakwater, another company on my list.

So today I revisit Lundin and though I still had this feeling, something quite
different jumped out at me. Here this old stodge company has put together a
lot of property deals and don't appear to have the young turks needed to kick
em in the behind and get em into gear. EZM excells at this. Look at what
they've accomplished within their limited sphere of Portugal. They've been
magicians at snapping together their projects, keeping costs contained, while
expanding reserves. They appear to always come out on top. Even in their
financial dealings. (Excepting a few hedges they did early on, (which they
hang their heads and admit)).

However, based on the .0952 of LUN, the EZM stock should go up a bit.

I think you're right. Even if LUN doesn't move, EZM might well see ~ $3.30.
But I suppose they could move in tandom, once the shock abates. Can you tell
I'm feeling better about this

Guess I won't sell before the deal is complete unless the .0952 gets
overvalued. I hope they get the AMEX listing prior to the deal completing -
I'm not geared to monitor the Canadian exchanges.

The last company I followed to AMEX took 4-5 months from filing. I suppose it
might be shortened, because EZM is already listed.

Even though they have a poison pill, IMO should a much better offer come
about, they would be forced to present it to the shareowners.

Yes, their fiduciary responsibility requires that. It may keep something from
happening to begin with though, realizing the hurdle.

At least this beats the heck out of the bottom falling out of the stock, as
just happened to Taseko, when they lost the main bearing in their crusher and
were out of business for 3 weeks. They had all the cost and no revenue. A 25%
haircut in 1 day alone Why? a single mine and mill, something goes wrong
and things go up in smoke. Like when the flock of birds took down the plant
electrical feed. Or, sidelining an ore hauler and walking on pins and needles
because they can't get a tire.

Steve Young

Those are horrible analogies

"Jerry Williams" wrote

Steve Young wrote:

[...]
At least this beats the heck out of the bottom falling out of the stock, as
just happened to Taseko, when they lost the main bearing in their crusher
and were out of business for 3 weeks. They had all the cost and no revenue.
A 25% haircut in 1 day alone Why? a single mine and mill, something
goes wrong and things go up in smoke.
Like when the flock of birds took down the plant
electrical feed. Or, sidelining an ore hauler and walking on pins and
needles because they can't get a tire.

Those are horrible analogies

sad part is, they aren't analogies, they're fact!
did you hate the haircut as much as I did!?
Luckily, I was under 1,000 shares when it happened

I still plan on keeping it longer term as long as copper/zinc looks like a
good investment. If one feels LUN got the best part of the deal, owning LUN
s/b OK.

--
Jerry


"Steve Young" bowtieATbrightdslDOTnet wrote in message
.. .
"Jerry Williams" wrote

Steve Young wrote:

[...]
At least this beats the heck out of the bottom falling out of the stock,
as
just happened to Taseko, when they lost the main bearing in their
crusher
and were out of business for 3 weeks. They had all the cost and no
revenue.
A 25% haircut in 1 day alone Why? a single mine and mill,
something
goes wrong and things go up in smoke.
Like when the flock of birds took down the plant
electrical feed. Or, sidelining an ore hauler and walking on pins and
needles because they can't get a tire.

Those are horrible analogies

sad part is, they aren't analogies, they're fact!
did you hate the haircut as much as I did!?
Luckily, I was under 1,000 shares when it happened