Take Over V Asset Sale?21 Oct 2018 16:22
Ok, getting a bit ahead of myself here I know. (Apologies if I'm parading my ignorance here, but c'est la vie)
There are some who foresee a take over of HUR at some point and others who see HUR selling (by then) well proven assets and moving on to explore new ground. ( and this seems to what Dr T. says they will do)
Without debating which it might be, what would the actual effect on the future S.P. be in each scenario? Would one produce a higher S.P. than the other? Why, and for how long?
What I'm trying to understand is this:
If HUR "proves the pudding" by demonstrating a viable, sustainable resource field, then it will own a valuable asset which it can sell. This makes HUR more valuable/wealthier and its SP goes up ( I assume). However, once HUR sells the asset and boldly goes, to break new ground, presumably the SP lowers again?
The "take over" scenario is easier to understand (for me). Company X offers shareholders a price that we either take or reject.
In the proof-of-the-pudding-and move-on scenario, it seems a little less clear, to me, when/how "payday" occurs. Would one type of "sell off" will produce a higher yield than the other? ( not that I'll be complaining)