mark2017's Stocks to Watch


Experienced member
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GameStop Corp.: A Buyout Target?
Mind you, dividend might not be the only thing GameStop stock investors can collect down the road. on its latest earnings call, management said that the company could be up for sale.

“GameStop’s Board of Directors, with support from outside financial and legal advisers, is conducting a broad range review of strategic and financial alternatives to enhance shareholder value. These options include, among others, a potential sale of the company,” said Shane Kim, GameStop’s Chief Executive Officer. (Source: “GameStop Corp (GME) CEO Shane Kim on Q2 2018 Results – Earnings Call Transcript,” Seeking Alpha, September 6, 2018.)

While the company does not intend to provide more details on this matter until the completion of its strategic review, Wall Street analysts have formed some estimates. For instance, Jefferies Group LLC analyst Stephanie Wissink said that under current environment, GameStop would have a takeover price of between $22.00 and $32.00 per share. Since GME stock currently trades at around $16.30 apiece, Wissink’s estimates would imply a premium of at least 35%. (Source: “Recent specialty retail M&A implies Gamestop price of $22-$32, says Jefferies,” The Fly, September 6, 2018.)


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1,055 7
Tempo Australia Limited (ASX: TPP): further to an announcement by Tempo in February 2018, Tempo confirms
that the leading International Power Company (IPC) previously referenced has been successful in being awarded
a Power Purchase Agreement for the Cohuna Solar Farm as part of the Victorian Renewable Energy Auction
Tempo confirms the IPC is Enel Green Power Australia (Enel) the global renewable energy business line of the
Enel Group a listed multinational group which reports multi-billion dollar annual EBITDA’s. Tempo confirms that
there are still conditions precedent outstanding regarding its current binding letters of intent with Enel and
accordingly, the parties are currently continuing work towards finalising contractual arrangements and satisfying
the outstanding conditions precedent.
The value of the works for Tempo is estimated at $15 million over a 12 month construction period commencing in
the first half of 2019.
Tempo Chief Executive Officer and Managing Director Ian Lynass said “Tempo has established a strong working
relationship with Enel and has continuously engaged in constructive manner throughout the process in the
interim. We are very pleased to be working with a world leading energy organisation on this vital renewable
energy project for the state of Victoria.”
Tempo Chair, Carmelo (“Charlie”) Bontempo stated that “as we continue to implement our strategy it is satisfying
that relationships that have been developed by our new leadership team are delivering value to Tempo.”
“Profitability Through Leadership in Productivity”


Experienced member
1,055 7
Northern Star in big league
Josh ChiatKalgoorlie Miner
Tuesday, 4 September 2018 3:55AM
Northern Star Resources managing director Bill Beament.
Northern Star Resources managing director Bill Beament.Picture: Mogens Johansen / The West Australian

Investors have wholeheartedly backed WA gold miner Northern Star Resources’ push into North America, driving the company to its highest ever stock price on the back of its acquisition of the Pogo gold mine in Alaska.

Northern Star announced the closure of a $175 million share placement yesterday, supported by major global investment house Black Rock, to help fund the $374 million purchase of the 4 million-ounce gold mine from Japan’s Sumitomo mining conglomerate.

It is poised to make Northern Star Australia’s second-biggest gold miner, with the potential to produce up to 900,000 ounces of the precious metal this financial year.

The company is already looking to produce more than 600,000oz this year from its Jundee mine near Wiluna and three-pronged Kalgoorlie operations.

The Bill Beament-led gold producer climbed 17 per cent by 11.30am yesterday, gaining $1.18 on its last trading price of $6.96 in early trade as investors flocked to the rising mid-tier stock.

Northern Star’s big deal has also drawn cautious praise from analysts, after Northern Star became the first of Australia’s cashed-up gold miners to use its bulging bank account — the balance of the purchase price not funded by the placement will come from the company’s cash reserves — to look overseas. noted the acquisition was conducted at a 35 per cent premium on a reserve basis, with official reserve figures giving the 250,000ozpa mine just two years.

But at $US63 an ounce on a resource level, the deal was conducted at a 43 per cent discount to the $US110/oz average, and several analysts have noted the company will likely bump up exploration to extend its project life in a similar way to how it turned around Newmont’s ageing Jundee mine in 2014.

“Significant mineralisation identified outside of existing resources gives the project potential for substantial further exploration upside,” the reviewers wrote.

“This transaction will transform Northern Star into a global gold producer with three tier-one assets located in tier-one jurisdictions, and will bring Northern Star ahead of Evolution Mining Ltd to the position of second-largest ASX listed gold producer.”

Northern Star shares yesterday closed up 16.7 per cent or $1.16 at $8.12.
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