The contributors at SilverDoctors make some good points for end of year upturn in price.
Donald Trump touting gold in a new series on the National Geographic Channel this weekend.
China and India importing the current annual global production by themselves.
Countries wanting their gold back.
National currencies being expanded for growth purposes.
It is all coming together for a gold rally
If gold jumps as they expect then CDE at $20+ and PZG at $4+ overnight.
And they say hope is not a strategy.
CDE will have a of $6.50 - $7.00 and PZG will be trading at $1.35 at the time this deal is closed? Do you have a talking Genie in your pocket?
PZG is exactly 0.02016 X CDE = $1.01 with CDE at $5.09... so that yields ZERO value for Sleeper potential.
In truth, Sleeper is not a great property at PoG near $1196 / oz ..However, I would expect that when the deal closes in April-May 2015 and Paramount Nevada is spun out to shareholders that we will see trading around 25 cents (assumes $10M in cash in the treasury and some positive PRs have been released in the prior 2 months). Now CDE will be $6.50 to $7 so PZG stock will be $1.35 for total value around $1.60. Most folks will still be under water, of course, but if you averaged down well under $1 , then not too shabby.
The Nevada Co shares are just issued pro rata to PZG shareholders. The market will set the price they trade, NOT the Company. Compare to near equivalent cos. and you arrive at 25-30 cents.
Interesting question. Brings some questions to mind.. Will pps hold better at .25 than 2.5? Will the short attack resume in force at 2.5 verses .25? With the history of dilution, will the reverse split be a function for that? PZG bought properties with little cash and mostly stock. Management will likely be the same therefore management practices likely the same. History repeating itself. Something to think about. Good question.
Some have stated that the price per share will be either .25 per share to .30 per share. Would they be better off doing a reverse split of 10 to 1 and have the PPS at $2.50 to $3.00?
Answering my own question...we get both..shares in the new company (prorated) and shares in CDE. This isn't actually too bad...