Member Info for gmed-2

According to this morning's Daily Telegraph, there are two other US funds likely to make bids, plus the possibility that Amazon will also join in the fun.

But it might settle quite a bit higher.

...it had "evaluated the conditional proposal together with its financial adviser, Rothschild & Co, and unanimously concluded that the conditional proposal significantly undervalued Morrisons and its future prospects"

Translation: "We're flattered that you think our company is worth a lot more than the market does, but we happen to think the same thing, except we differ quite a bit on the numbers. So if you think we'd even consider this offer, you need some professional help (and we don't mean Goldman Sachs). We expect there's plenty of air between this first offer and your final one and if there's not, we're very happy to go on as we were. But if you make us a serious offer, you'll get a serious answer. Oh, and better be a bit quick about it or you may just find yourself in a bidding war. Just a bit of friendly advice. "

I am an LTH and, personally, I wouldn't sell for 230p. It's not every day I can find a company that's very well managed, has a good public image, pays a nice dividend and just happens to be sitting on a very large pile of unrealised assets. I'm perfectly happy to continue to collect my dividends for a long time, unless there's an offer that bears a better resemblance to the future cash flow I'd be losing and to the value of the assets I'd be giving up.

By 20303 - that's a good 18000 years from now. Should be doable.

I was wondering yesterday why the mms raised their asked to 7.80 without the trades to explain the move. Now I know: it was a wild guess that there would be some positive news today. And sure enough, there was. What an amazing coincidence, eh?

My approach is that this company is at the point where one of two things will happen over the next year: either it will be well on its way to being a successful miner, bother operationally and financially, or it will go under. If the first happens the share price will be a multiple of where it is now, but more importantly, the company will have survived a critical period, which will allow it to become even more profitable with time, because the potential is clearly there. This should, of course, be reflected in a handsomely rising share price. If the company goes belly up, I'm going to suffer a loss, but a loss capped at 8p a share. Those odds sound pretty good to me, so I've significantly increased my holding at this level. I've had a few other shares in a very similar situation to the one WRES is in now and employed the same approach quite successfully, happy to say. It takes a firm belief that the company has a good chance of pulling through the difficult period (and a bit of cojones, as they say down there at the mine), but I've found it's the best way to turn a current loss into a future gain. And now I'm going to go pour myself a drink and not think about WRES's sp for a while.

If they're using last year's big dividend chop to pay down debt, I'm all for it. It's a better use for the money than I could have found for it (even with the pubs closed all year).