Q: Bit of a gong show. Initial plans to spin off (with royalty attached so how much of a real spin off was it?). Change the spin off plan plan with shorter royalty life. Decide to can the spin off plan after spending substantial time and money (I have the half inch thick Proxy Circular). Now their Q1 is over of mine costs and short on revenue.
Is this company really a hold or should I give up and take the gain?
Is this company really a hold or should I give up and take the gain?
5i Research Answer:
There is likely things behind the wall here; the cancelled split certainly has a cost (legal, mostly) but it also makes it a more likely takeover candidate. Glencore now has the momentum in this battle. Nothing is assured of course, but we think holding is the best course of action still.