Red Rock Resources Share Discussion Threads

[kezman01] 02/10/2014 08:38

That notice to Shareholders was tantamount to a begging letter.
Furthermore the reference to declining ore & gold prices doesn't bode well for any asset sales.
Tick tock....

[johndee] 02/10/2014 08:26

About to go bust then!

Shareholders will not allow any more dilution here I am sure.

[bam bam rubble] 01/10/2014 17:55

3 mistakes to avoid when a buyer approaches

Mistake 1) exclusivity clauses for six months
Firstly these should only be signed at the very end of a negotiation process.
If you dish out exclusivity too early you lose negotiating leverage. Secondly
six months is too long allowing the buyer half a year to drag out discussions.
It shows naivety. If you must do this it should be no more than 2 or 3 months.

Mistake 2) Hiring an M&A lawyer instead of an M&A banker/company seller
A lawyer will vet letter of intents and draft the agreement but not much else.
Use a good M&A professional to run the whole process for you. Their fee (4-5%
of the transaction value) pays for itself if they can get a better sale price.

Mistake 3) Hubris
Just because you get approached does not mean that buyer will close on a deal.
Riverside Group who buy smaller businesses to sell on later, approached 4,228
companies in a year and about 1 in 300 of those approaches resulted in a sale.
If approached stay calm and remember some buyers just like to look then leave.
hxxp://www.theglobeandmail.com/report-on-business/small-business/sb-money/a-buyer-approaches-three-mistakes-to-avoid/article627224/


Mistake 1) Yes. It's getting on for five months exclusivity, will soon be six.
Mistake 2) Yes. Offered their M&A lawyer chum 'Ariel Partners' a hefty fee of
14% of the initial proceeds and their negotiated price will crystalise a loss.
Mistake 3) Yes. RRR tends to shout about a letter of intent from the rooftops.

[soulsauce] 30/9/2014 21:13

Only a school of thought :-/

[steve1905] 30/9/2014 20:52

I see bell has taken a pay cut. There is a school of thought that suggests you wouldn't pay him in washers

[soulsauce] 30/9/2014 16:55

Or in other words, when the going gets tough…will the tough get going?

Lol, no but he will be issuing lots more confetti................

[atino] 30/9/2014 16:19

Newsletter/podcast:

'Red Rock Resources: When the going gets tough….will the tough get going?"



Since listing in 2005 Red Rock Resources (LON:RRR) has seen some extremes in its share price and has been somewhat of a roller coaster ride for investors over the years. Those who invested in 2009 will recall the spectacular journey up from a fraction of a penny to over 15p in 2010 and the (equally spectacular) ride back down again to around the same levels where it all started. With the cyclical resources market, timing is everything and its never as easy as it looks as no one is going to ring a bell to let you know when you get to the top - or the bottom.

For us, Red Rock's current position is looking eerily similar to that of 2009, when it held a clutch of compelling assets with completely bombed out valuations - only today most of those assets are far more developed (with particular regard to the company's stake in Jupiter Mines).

Followers of Red Rock's sister company Regency Mines will know only too well it can take just a spark to start the fusion, transforming sentiment and market psychology almost overnight. The market was tough in 2009 but Red Rock used that tough market as a platform to outperform. So on the back of Regency's resurgent new direction, we thought it would be very timely to get Chairman Andrew Bell's take on the current state of the natural resources market, as we grind our way out of this market cycle trough, and to see what plans he has to repeat the same trick with Red Rock. Or in other words, when the going gets tough…will the tough get going?

hxxp://www.miningmaven.com/companies/aim-mining/red-rock-resources/red-rock-resources-when-the-going-gets-tough-will-the-tough-get-going-20140929422/

[jimbo55] 29/9/2014 14:20

Clunes100 25 Sep'14 - 13:11 - 5628 of 5644 0 0

Averaged down today, in the hope that I might get some of my money back.

Rarely a good strategy when it comes to POS aim stocks like this one, and there are very few points in the last few years where it would have assisted you to your benefit. Personally, when an investment goes bad, I find it better to take the hit and move on. There's an opportunity cost to remaining invested in underperforming dog stocks...

[johndee] 28/9/2014 17:30

Has DS bought more again?

[alan1234] 28/9/2014 12:33

i have been trying to work out why dan the man keeps buying more shares? what does he know that we dont?? cant be for the sale of Colombian cant see it going up much even if it is sold??? i think there is something going on in the background ie maybe a take over by jms its no secret that they would like to be lse listed. it would be a cheap way in for them. the problem would be at what price? thats maybe why dan keeps on buying to build up a stake to use to vote with. if there was a bid? to let jms get in cheap. also why has a director of rsl bought 67m shares strange!!!! just my thoughts.

[johndee] 26/9/2014 12:47

Is that another 9m bought by DS?

[fangorn2] 26/9/2014 10:52

It'd make sense bar salary front of course.

Interesting days at HH that's for sure. Reasons to be a tad optmistic

[bunky3] 26/9/2014 10:45

If HH or whatever comes good he will merge and make rrr work

[fangorn2] 26/9/2014 10:43

Wonder when Bell will just merge RRR with RGM....

[johndee] 26/9/2014 10:14

They need to sell everything apart from JMS. They been trying for ages now.

[ciao4niao] 26/9/2014 10:11

That seems to me to be a 'for sale' sign!

If it is, it couldn't come soon enough. Time the dead wood at the top of the tree suffered a bit of surgery.

[atino] 26/9/2014 09:55

hxxp://pdf.marketpublishers.com/worldmarketintel/red-rock-resources-plc-rrr-company-capsule.pdf

[martyn9] 25/9/2014 16:29

LOL this company is dead in the water!!!.

[johndee] 25/9/2014 14:37

Having said that RRR will go up 50% in weeks now. Rock bottom share price today.