Ely Gold Royalties Inc ELYGF

reverse split

[Ptraum1]

Shylock's post is spot on. Reverse splits are a terrible idea. The stock will do even more poorly. Focus on getting more royalties and supporting the share price above a dollar.

[Stocks6427]

I agree but my point is that this is no longer a choice. It's on the books to happen in q2/q3. One certainly needs to evaluate before purchasing more. I personally don't like it in the current gold climate. Jmo

[ruffus23]

Reverse split is good for producers. Not good for explorers. As we are cash generating I put us in the producers category. This is very good news!!!! Tgz, Edv, eld, vgcx all successful post consolidation. Consolidation used to be frowned upon but not anymore if you're a producer. 

[colt45acp]

rUFFUS MAY i call you Ruff, anyway ,that is interesting thinking. Seeing all manner of companies do all manner of different money making ventures and may or may not use R/S AS A MEANS TO A END. wHAT IS YOUR DATA TO BACK UP WHAT YOU ARE SAYING. Not yelling (sorry). Think you find data wise post consolidation does nothing much other than rise the SP up. THEY must still prove ( management) they got

[LowtoHigh]

I would have to agree with Colt. I did a simple search on a few companies that recently did a R/S. Not in gold, but energy and bio-tech companies, and after viewing the first 4 I came upon, all of them faltered after the R/S. So the question is, do we cash out before the split? Adding more to position, although attractive as it may be because the SP keeps falling, may lead to just more money doen

[ruffus23]

Colt- Reverse splits have been  my bread-and-butter over the last few years. Usually the stock price will crash for the first day or two after the reverse split but then it shoots up. The primary reason for Reverse splits is to get the share price well above a dollar so the institutions can start buying up the shares. I believe many pensions and institutions legally aren't able to buy

[Shylockreturns]

ruffus - I am glad to hear you have prospered on reverse splits. However, your experiece is highly atypical. With rare exception the execution of a reverse split is the beginning of the end for a common share and hence the company that (those) share(s) represent. Proceed with utmost caution. May your particular individual success continue. My experience has been quite the opposite and in

[ruffus23]

Difference is producer (good) vs. Explorer. (Bad) Please find me an example of a producer that did a consolidation Please find me an example of a producer that did a consolidation And did poorly after. 

[Shylockreturns]

My comments are not necessarily confined to gold shares - producer or explorer - but to all shares in general. The evidence is out there.  I gave a number of linked articles discussing this topic in depth a few days ago. If whatever system you are using works for you, more power to you. In general, companies which do reverse splits are looked at as being troubled and fail to prosper post

[Lowcapmocap]

The thing is that Ely isn't going to pay for any current or very near term royalties as they are all over priced now. Trey appreciates ELY's very high NAV being it's standout trait, so he doesn't want to dilute that. Unless people hope on the gold price alone carrying the stock to where it needs to be, there aren't many (if any) potential catalysts for shareholders in the

[LowtoHigh]

Yup, I think I'm out. Not worth waiting 4 years when that money can be used elsewhere. This one is done and my bad for jumping in without doing proper DD.

[Lowcapmocap]

Also for those saying reverse splits are guaranteed to fail look at Metalla and Abitibi royalties, they both did it and they're shares have been doing great (Metalla with the appreciation, Abitibi still doubling while increasing dividends and carrying out share buybacks)

[Lowcapmocap]

That being said, I would personally prefer for Ely to focus on the properties they do have, and just start a course issuer bid if they think shares are really underpriced. If the royalty space is too hot, all that money it'll spend on listing I think will be better for the occasional bargain royalty purchase and just buying back undervalued shares. It'll take awhile but the cash we do know

[ruffus23]

Edv, tgz, eld, vgcx and krr Have all done well since post consolidation. Someone find an example of a producer that's done poorly?

[colt45acp]

Ruffis you have not given data ,your giving your opinion on your stock picks and why you think they were all winners. Had they not R/S most likely they would still be winners. jmo.

[ruffus23]

Colt - possibly but in most cases the bounce was fairly immediate(usually a drop for a day or two). Again many institutions/pensions need a price over a dollar to buy a stock. This creates instant demand.