Im not saying that RMS won't find a way without SPR mate. Yes the current cash that they have in the kitty, and the FCF that is coming puts them in a very strong position for both stability and any future M&A. Hence why I rate RMS as a buy.
My point is based on what is currently shown for the future of RMS without SPR only. And the fact that I believe the risk v reward for SPR to go it alone is in shareholders best interest.
As for the case regarding Simons recommendation, I do remember many people berating him over recommending the royalty, even though we, and the experts believed it was a bad deal for SPR holders. Now in saying that I believe that SL didn't have a choice, and had to back the people that got us were we are today, I commented on this at the time and understood why he did it. I have been in SL's corner throughout the whole FFR/GCY merger and everything he brought to both FFR holders and GCY/SPR holders but this time I believe we are not aligned in our thinking. I guess if I was given an opportunity as he has, I probably would take it also, as many of us would, but that is not what this is about.
Im wondering if SL would back this merger if he was not offered a position at RMS? Would he let go of Dalgaranga so easily? For an MD/Director of a struggling company that barely stayed alive to bring it to were SPR is today is an almighty feat, and having that much luck doesn't happen twice in a lifetime. We will probably never know the real answer to that question, unless maybe we see another offer from someone else that doesn't include SL on the payroll of that company, will he think like I do and not want to let go of Dalgaranga so easily? This is the multi billion dollar question.
GLTAH DYOR
RMS Price at posting:
$2.15 Sentiment: Buy Disclosure: Not Held
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