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High River Gold Mines Ltd HRIVF



GREY:HRIVF - Post by User

Bullboard Posts
Comment by Olderwisernowon Jan 30, 2009 1:34am
318 Views
Post# 15739386

RE: RE: Bets Anyone?

RE: RE: Bets Anyone?I have mentioned previously, why I would hold on, if Severstal, to the public entity and their millions of shares. Say YOU had invested at .20 and held over 300 million shares, and see a gold bull market starting to move up again. Would you then roll your shares back, at or near lows, at or near one half your cost? Would you change the situation, given the choice, so that you did not now own those shares? Why wouldn't you look at the market and say, if we get this thing running, production up, costs and debt under control these shares could easily trade up over $1 again, and maybe even more. We could do many things with that paper, that leverage, and it would look pretty good in terms of our investment acumen. On top of that, we have ability to buy more shares at .60 if the price rises above that price. Why wouldn't we at least try, BECAUSE we can ALWAYS take the other paths some contemplate, should this strategy not work. It does not take a genius to see, that there is potential in the VERY NEAR future for ALL publicly traded gold stocks, especially those with production, to move up very rapidly, should gold move above $1000 per ounce and even higher. And should silver move up to $20 range again, Prognoz would not exactly lose value. All that would be required, as I see it, is to get things running smoothly, and then talk about potential. Detour shares might even run up to where they take care of a significant percentage of debt. That is why I think they give it an attempt, an attempt to see a bigger cap and an ensuing  multiple on their investment. This looks to be the fastest way conceptualy, other than selling it, which I do not think was or is their intention. Remember, there are advantages to owing a publicly traded gold company in Canada, when you are a Russian entity, with a sinking currency, and with your main business, steel looking to be YEARS away from coming back to any sort of large profitability. You look at the choices, and this appears to be a good bet. I repeat, of course, I could be wrong, and even today might read they take some other route, but it will be interesting, as I just do not see any other suggestion as the quickest route to their realizing large returns on this investment. And in the current environment, this has to be a factor for ANYONE, big or small. My first question, I ALWAYS ask, is what would I do given a situation. Here, it seems pretty simple, from my point of view, because the other choices take me down a path largely involving little in the way of liquidity or return on investment for many years. And I can go these routes at most any time in the future. Given the current market, I would give this at least 2009 to see if a run into gold takes place. I win big if that happens, if Severstal.IMO
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