Why we are here??? BOD and Management...People buy stocks for only a few reasons, but first of course, they believe that they are going to get back more at some point later than their purchase price or ACB over time. There are all kinds of methods applied to this process, all claiming this or that, but in the end, nothing trumps this simple fact. Now lets look at HRG.
Looking back you have a story projected of a junior which is coming on with production, along with growing reserves and assets. Things look promising, so guess what, buyers emerge. Like most situations, there are various problems, delays, price fluctuations, but the promise remains intact right up to within about a year of now.
And what is that promise: production of gold and claims for the year from a group (not just one) of mines , a huge silver asset with one of the largest untapped silver deposits in the world confirmed by drilling results etc., and with further results pending which could enhance reserves both at the silver property, but at the gold properties as well.. Just take the time and read back on this stuff to confirm.
The world starts to gyrate, some time ago, so warning vibrations are starting to be heard about what might be coming, and it is everything from gold to thousands (still heard) to depression and deflation. But of course, HRG keeps putting out positive stuff. The promise is there it seems. And I say rightfully so, given GOOD MANAGEMENT and guidance by a QUALIFIED BOD who should be looking at their risk reward exposure, BEFORE making strategic moves, so that the valuable assets are protected from possible scenarios.
What actually happens? A complete failure of managment and BOD to protect shareholders and company value. WHY? BECAUSE they did not consider various scenarios which were VERY possible and have REAL contingency plans that would work given those. The most obvious being a liquidity crunch caused by: setbacks, fluctuations in metal prices, stock market declines of a general nature and need to bridge any or all of these with cash, which obviously would be harder to get given any of these occuring. Its called MANAGING A COMPANY.
So on the appearance of the first cracks in this rosy picture, few (including myself) realize just how ridiculous a managment group we have in terms it seems of realistically looking out for future events which go against their best projected of layed plans. Consequently the company does little (IMO) and for many months makes what appears now to be fatal errors. Some of which seem so basic as to be almost negligent, in my opinion. And whats worse, the BOD and Management have EVERY appearance of continueing this same pattern, seemingly to date.IMO
When people invest, they want to see promise, managment that know how to run a company, with results, and projections having some sort of credibility. They review this, and if they see promise and or a bargain they buy. What do they see here for MONTHS? The EXACT OPPOSITE.
Do people even now see managment or a BOD which installs confidence of ANY ability to protect shareholder value, make the right moves or even survive? How long have they been in the process of trying to do something is it? And what have they PRO'clckJECTED less actually even accomplish???
So why would ANYONE invest? UNLESS of course they knew something was going to AT LEAST save this company from going to zero? But who has that confidence. This at a company with operating mines, increasing reserves, a huge silver asset, and supposedly increasing production with costs starting to drop not rise. And it is trading for .04-.05 giving it a market cap LESS than many shells with absolutely NOTHING.
Small wonder people are looking at BOD and Management and saying, what the f 'ck are you guys actually doing? Are you screwing people outright for your own advantage? Are you completely daft? Why is your investor relations so poor to date and your image completely destroyed? Are you doing this intentionaly and if not then why have the past months been a complete lack of anything even remotely reflecting promise to most, as obviously completely reflected in the share performance over this time frame.After all, you the BOD and Managment are responsible for this performance to date it appears. And past announcement and proposed deals for a good long while have been PATHETIC.IMO So now you appear stuck, having completly screwed the future of this company. IF NOT TRUE, stand up and say something to the contrary, as the share price says complete failure on your parts.
This is not like a month or two of this, it is now getting onwards of one year of nonsense.IMO
What I want to know, is why you have not sold this company for more than what the share price is today? Significantly more, as I see it? Why are you allowing this to appear to go completely broke at the expense of current shareholders. After all - YOU the BOD and MANAGEMENT are supposed to be working for the CURRENT SHAREHOLDERS. It is not good enough any longer to keep putting out ridiculous releases and shaggy dog story BS (IMO) showing absolutely NO PROGRESS to date on much of anything. Put another way, what have you actually accomplished of late?
So why the price to date with a book value significantly higher? It is because this is completely mismanaged (IMO) and continues to reflect arrogance, lack of responsibility, a complete failure to act and make decisions on a timely basis(MY OPINION ABSOLUTELY), so that each successive month the situation instead of being resolved deteriorates further. And we, the shareholders who this group supposedly works for, are the ones who suffer the consequence. What are these people doing? What value have they protected over the last months or year for you? Who do they work for, themselves, or some other group, because as I see it they have done absolutely NOTHING FOR SHAREHOLDERS. IF they have, could somebody, even better them, explain exactly what that has been????????????????????????????????????????
Price reflects this - basically NOTHING. It really is that simple, unfortunately.
What would be different, or should have been different? Good managment would have done something to avoid this first, second even if problems would have acted faster, and been far more forthright, and not left it until the share price was sooooo low they could not basically say anything, other than oops, we failed. That is how I see it. Given GOOD managment, this stock would be trading at well over $1 given operations, potential and reserves.IMO Again, that simple.IMO
.05 range is PATHETIC. AND if these guys benefit somehow from this, I as I have repeatedly said here, will spend significant funds if any remedy exists. All of which is being watched carefully. So I wait for the final outcome, but have little in the way of faith regarding this crew, and agree unfortunately with another comment from another that they may well be trying to benefit themselves or direct the assets to another entity at ridiculous price, and basically screw all the current shareholders. It is hard to come to any other conclusion, from my point of view. This is an opinion, I can state, and whatever line it crosses, good on that line. Or maybe they should form a committee to look into shareholders who are discontented with their performance to date! roflmao Hey they can hire the same guys who have preserved our value in the committee to date!