Replies to post #124901 on Sarissa Resources Inc (SRSR)

[Teedlum]

So Canada playing bad cop. That could be much better for the deal, provided the deal ultimately gets done.

[Kramer_Scarcelli]

This is not a 15 billion dollar takeover....this is 20 million for a BFS... I think we'll be fine....

[downsideup]

I dissected that all pretty thoroughly recently, maybe more than a week or two ago, but not much more... complete with links to and quotes from Canadian law and an brief overview of the process requirements...

The Petronas deal is for $5 billion, the CNOOC deal is for $15 billion, putting them both well above the recently changed threshold in the $ requirement for government review, which is currently right around $1 billion dollars...

I'd be as happy as anyone else here if SRSR's market cap were larger than that threshold value which would make the deal for half of Nemegosenda put us up and over that threshold... but, last I checked, SRSR was not trading anywhere close to, much less at or above $2 a share last week...

And, then, in relation to the policy issue and the POINT of the focus they've adopted ? Note it's also the SAME government we're talking about... who've ALSO been working to focus foreign direct investment into funding new efforts that advance the exploration and development of new resources, rather than channeling that $ interest into buying up the "crown jewels" in already developed and producing resources ?

Those are two different sides of the SAME policy ?

That's why the $ threshold exists... and generates different regulatory interest and policy responses if you're above it than it will if you're below that threshold.

That they'll make it harder for foreign investors to invest in the large $ value, already developed resources... doesn't conflict with policy that is focused on shifting investment into earlier stage exploration and development... where the $ involved naturally will be smaller... because the focus IS on earlier stage exploration and development work, versus buying up already proven and producing resources ?

There's more complexity we could discuss... in three areas:

Some, first, is the obvious schizophrenia that seems apparent... when you compare the recent news re CNOOC and Petrobras, with prior news:http://www.bloomberg.com/news/2012-01-19/canada-pledges-to-sell-oil-to-asia-after-obama-rejects-keystone-pipeline.html

The appearance issue evaporates... when you consider the issue in context of what Canada's policy ACTUALLY IS in directing foreign direct investment into helping with the development of new resources, rather than into chasing after and buying up existing production. The news, naturally, ignores discussion of economic development successes occurring as a result... while focusing instead on the deals that ARE NOT in accordance with the policy ?

Some, second, is related to China's own need to refocus and redirect it's own efforts into cooperative efforts with others that will enable adding new global resource capacity to support China's growing hunger for resources, driven by its economic growth... rather than having them focusing only on buying up all the already developed existing capacity... since that naturally will tend to impose an accelerating undercurrent in inflation. Canada is also right, and hardly alone, in having issues with China's reluctance to adopt policy enabling reciprocal market access.

And, third, some is related to noting the banks cranial rectal inversion problem, still driving their thinking, whether through overt or subtle forms of protectionism, as through purposeful manipulations of the financial systems and the rules governing them, that they will be able to sustain their own wrongfully imposed monopoly in control over others resources... through wrongful control of access to the public markets, and lending.

It is amusing to note that as you see "the banks" continuing to try to limit, by hook or by crook, companies access to alternative financing... you also see the shift in tack from claiming SRSR can't get funding "because there's no value in rocks"... to now claiming SRSR shouldn't be allowed to get funding from others... because "there's too much value in SRSR's rocks"... to allow anyone other than them to participate in funding their development ? Suddenly "no value in the rocks" becomes "the rocks are an immensely valuable strategic national asset"... ? LOL!!!

The banks have gutted the market functions that in the past enabled proper development of new competition in the markets... apparently thinking that by killing off the engines of our economic growth they'd benefit themselves more, over time, by being able to take more of a shrinking pie, over time...

However, the stupid policies adopted at the insistence of stupid bankers have beggared the banks as well as everyone else... only perhaps more... given the banks corruption is rotting them like fish, from the head down, and from the inside out...

China has money to invest and they will. The banks don't... or they won't... A bank without an ability to compete in enabling investment and growth... and in enabling the success of those things their customers are investing in... is a bank which has no utility, no reason to exist. Government policy "reflating" the banks to replace the capital losses they sustained in the latest financial crisis... if you don't fix the basic problem in banks corrupt policy... can't work.

The banks still appear to have not understood all of the critical implications, for them, of 2008... after it was allowed that they will survive, and as they still fail to address corrections of their errors.

Still, I don't think those "market problems" are going to enable placing limits on SRSR that will prevent advancing Niostar...

Niostar and Nemegosenda seem to me to be well positioned to provide a practical proof in point of the proper "development" focus that is the key in the policy the Harper government has adopted...

Petrobras and CNOOC each appear intent on ignoring what's been being said...

Niostar... seems it is more a case study in positioning to be the poster child...