Re: finally the news...
in response to
by
posted on
May 31, 2011 07:22PM
Multi-Billion Dollar Agreement Signed With Oman
Hey stock_shark.
Hip Hip Hooray for Frank Drohan, and his faithful crew and devoted business partners in Oman - and around the world for that matter. The conclusion to a very long and hazardous initial campaign is about to be concluded. Of course it marks the beginning of an enormously exciting real estate project - that will help support capitalism in Oman and create jobs. I can't help feeling prideful.
You ask: Will the stock fall back? No!
Why not: Managers of public funds may be constrained until the D.A. is signed, but the rest of us likely consider it a done deal: all the principle owners are in the same boat, have similar goals, and subscribe to the same general policies and practices. Investors trust the Oman government.
Benchmarks of value: Three partners in OMAG LLC paid $70M for 40%. That translates into an established founder valuation of $175M ($105 tagged to current OMAG shareholders, plus a $10M cash payment to OMAG - together totaling $115M, or about $9 per our shares - and that's just for starters. Frank is focused on the longer term perspective, or discounted present value. He believes the share value will be easily in the neighborhood of $35 per share, and that's before the contribution of ancillary businesses to be formed over the next 18 months or so.
Alas, there is no overhead supply to suppress current shares. Market makers will show their stripes manana: bidding size and offering zilch.
Let the good times role!
harrell
in the