Skip to main content

DTR - Countering the Threat

 How does DTR deal with the takeover thret outlined in the last post?

Well, it's a bit of a (genuine) caatch 22.

In my opinion, sitting on their hands and trying to stay under the radar will not work for them, they are too close to Mountain Pass and MP knows all about them which means that Hancock Prospecting Pty Ltd will find out all about them.

So I feel that it is already a given that HPPL knows all about DTR. The thought proceses have already begun.

DTR should embark upon an extensive PR campaign, raising the profile of the company and also (hopefully) the price of their shares. This campaign cannot stop, it must be ongoing and it must be bullish. It must tell NEWS with every release and, to help get the story published, it should be editor-ready )ie written ready to print - no need for a journalist to work hard unless they want to expand the story).

Print, audio and video. The MD needs to allocate some time each and every day to PR activities - being interviewed.

And there's plenty to tlk about. he increasing gold field; the rare earths; the strontium, the Department of Defence nationalisation rumours, andso on.

Will this help raise the share price? Probably (there are no certainties on the share market). Buut...

It will also raise the awaareness of the company amongst those who might want to take it over and might force HPPL's hand (if they do decide they want to take DTR over).

A stronger share price would mean a higher takeover offer, and we know that Elon Musk and HPPL both have very deep pockets.

Does a solid and ongoing PR campaign stop a takeover? No. But it might just increase the price. DTR's shares are, at the time of writing this, 1.3 cents. If a takeover offer came in at triple that, the offer would be at 4 cents a share. However, if a PR campaign triples the current price then a takeover (at triple the share price) would need to be at 12 cents. 

(I am absolutely NOT saying the share price will go to 12 cents, I am just using the numbers as an example to demonstrate the maths).

And while the Board of Directors can outright reject a takeover offer that they feel is not in the best interests of the shareholfers, takeover predators have many ways of achieving their aims.

Will DTR get taken over? That is uncertain. What is certain is that DTR is heap and it will attract attention of organisations like HPPL.

Like I said in the last post: interesting times.

Comments

Popular posts from this blog

A Couple of Updates

 Well, it's Monday morning and the week has started with a bang. First, PFE announced that there was an unexpected problem with their test drill and they have had to abandon that and go to a new test drill site. A delay, but no real issue apart from that. And the market hated that. Good news for those wanting to buy, not so good for existing holders. IMC released their AGM presentation which indicates that there will be some news in December and then a very busy (and hopefully productive) 2025. Sales are good and continuing to get better and better.

2025 - an early start

 Ok., so here we go on my Trump-era goal. Just bought MXR (yes, on the ASX). AAR wants to take them over at 7 cents as a scrip payment (paying in AAR shares instead of cash). The current share price is 6.3 cents. So that should be a quick 10% gain. However... this does look like a lowball offer and may yet be increased. MXR has great assets and AAR already owns almost 20% of MXR. So AAR is committed to a deal and that may just attract other attention. It looks like a no-brainer to start 2025. Yes, there is always some risk, but this one looks pretty good. I have done a bit more research and have some exciting thoughts, including one that looks a little like another WGO (which returned handsomely on a takeover). More news coming as I do more reseach.  Another one that looks good for a quick profit is GES, but as I write this, there are no shares at the right price (.05).

Out of 2

 I ahd some bills to pay and these 2 got the chop: PFE - such promise, such disappointmen IMC - I always had some ethical problems with this one.  But there it is. Bills paid, and a little left over to find something new with.