RE: RE: RE: Lowest close EVER? Hey thanks for the response. I hear what you are saying regarding "getting their own house in order" rather than doing an acquisition...I think the only counter point to that is that the perpetual 'problem' of all gold companies, but especially WGI which only has one asset to work off, is that eventually reserves have to be replenished, otherwise there can be no growth. I think the management realizes that, in fact, I remember seeing an interview with Randall Oliphant on BNN where he seemed to suggest that his vision of the company was to grow it into a mid-tier producer, and of course we
So yes a share buyback would obviously be accretive to shareholders, and would make a lot of sense in stabilizing the share price in the short term, but it doesn't do anything for growing the company down the road. On the other hand, if they can execute a deal (i'm assuming they will try to target a junior that has excellent quality development assets and is running out of money), then it could be accretive in the same way and provide a longer term growth platform. And if that could be done properly, we could be looking at a much more valuable company several years out.
As for the insider buying, I hear what you are saying, but the management does in fact have a large holding. And one of the problems is, I suppose, a 'concentration' issue - no matter how confident you are in something, you don't want all your eggs in one basket. I believe Oliphant has 4 million shares, so he's certainly quite exposed. A large insider buy of course would be a vote of confidence, but at the same time, I wouldn't look too much into any absence of buying. It's easier for insiders to do their job and cash in eventually on their options.
The selling, on the other hand, I wonder about. Anyone who is educated about the assets here reasonably would not be a seller, but it's the type of market where institutions and individuals are tax loss selling, and a lot of people have given up on the junior resource market. Those with the stomach to stay in, assuming a recovery in commodities over the longer run, and the company executing properly, will make multiples on their investment from here.
Stick with it everyone, whatever is going on here seems to be market related more than anything. Let's hope for better days going forward. Take care everyone.
Salida