As I said, expect the unexpected! For those who trimmed a bit, good call, you will be able to buy lower. As many are trying to determine the "floor" I would think .30 is rock bottom because that is what Severstal paid and many retail investors have/will be scared off.
If one thought in "normal" terms most CEO's would have killed for the Q2 results (save the write down of Prognoz). That being said, Severtstal does NOT want the shareprice to rise and will do anything and everything in its power to see the shareprice capped. I believe they have done great harm, not only to HRG but to Severstal itself. It clearly demonstrates what a BUNCH OF SLEAZY operators they really are. I do not believe for one second that PWC (the auditors) would let them pull that stunt and they will have to write the asset back up before year end. Unless Severstal is going to abandon Prognoz, but then again there are too many oz in thw ground to simply walk away.
I asked the question to Mr. Poad via Dan the man, does HRG have recourse against the other 50% owner of Prognoz for the $17 million of shared exploration expense? The answer is yes, HRG could pursue their business partner for the 17 million. But I cannot find any info on Evergreen the owner of the other 50%. Who did the estimates? When? and mostly why does HRG still tout the "value" of the silver when quoting the gold equivalent in total reserves? HRG is GROSSLY misleading investors. SLEAZY SLEAZY SLEAZY
Now turning to the CICA handbook here is the rule.
| EIC 174 | Mining exploration costs
Considers the issues of (i) when exploration costs related to mining properties may be capitalized, and (ii) if exploration costs are initially capitalized, when should impairment be assessed to determine whether a write-down is required, and what conditions indicate impairment. Applies to financial statements issued after March 27, 2009, except for entities that do not apply Section 3855 who may defer application to interim and annual financial statements relating to fiscal years beginning on or after January 1, 2010. |
I would like to know exactly what the "impairment" is. Clearly the BOD has exposed themselves to potential lawsuits for this childish accounting 101 fairytale.
So what can we do? Why not take HRG to small claims court? To be sure if HRG was sued by THOUSANDS of investors for less than 10K, that would freak out both Severstal and HRG. Just a thought......
CJ