Paramount Gold Nevada aka PZG-WI aka Spinco will begin trading Monday 4/20/15. See if it makes sense then. Let me know how you like the huge reward. You have a PZG share valued at $1.27 and then you trade 20 shares or $25.4 for one share of PZG Nevada with a value of $2. I'm missing the reward here.
That makes no sense, you can only value the shares of Spinn Co once it is priced. I think those that held PZG through the spinoff will be rewarded hugely.
I considered holding but but I think gold may drop seriously before it bottoms. If it does I'll take the opportunity to scarf up a few extra shares.
Good luck. I'm going to ride CDE for awhile but dump PZG-WI aka Spinco. PZG sold the real value they were holding to CDE. Sleeper will remain dormant until gold gets back to the high numbers. The bulk of the remaining Mexico property needs drilling and development. Same problems as before....cash poor.
Definitely added value. All depends on the price of gold and silver plus cost of production. Long term return on CDE stock because of current pricing. Try Edmondson on CDE, he's a little too pro CDE but it's not all bs like so many on the boards. He definitely has a watchful eye on CDE and knows its every move.
By the way, thanks for the explanation and I have another question for you. How do you think the merger will affect the value of CDE stock?
CDE today $5.69 x .2014 =$1.14 PZG-WI today $1.95 divided by 20 because one PZG share is 1/20th of a PZG-WI share or .0975 cents. Add $1.14 plus .0975 for a PZG share value of $1.2375. PZG closed at $1.23 today.Not a coincidence in my opinion.
Most days you can multiply the share price of CDE by .2014 and you will get the same day price for PZG within a penny or two. Now that Spinco aka PZG-WI has a published pps,($1.8 yesterday) you have to factor that in to get an understanding of the daily price of PZG.
To expand on my last post, if the spinco shares are valued at $0.0322 per share, the transaction would be "break even" for PZG shareholders at this particular point in time.
It is my understanding that PZG shareholders will receive .2016 shares of CDE for each share of PZG. AT today's prices before opening PZG is $1.27 and CDE is $6.14. 5 shares of PZG would be $6.35 and 1.008 shares of CDE would be $6.189. Additionally, PZG shareholders will own 95.1% of spinco (value unknown). Is this correct?
Roughly equivalent to value of stock holdings if sold at this price vrs selling CDE equivalent(PZG sharesx.2014) at current price plus selling PZG-WI at current price of $1.80. Do the math and you will see.