Post by
missouriminer on Feb 03, 2011 2:44pm
IPO Possible failure
ThyFish, Brother I am way past the point of being cool with the IPO failing. I'm to the point of hoping it fails! Everyone here knows this Gold bull run has a ways to go, but all things good and bad come to an end. Alexei's business is not Gold, it is clear by Severstals incompetence of marketing that Gold mining is not his forte. His business is steel and to keep his steel business Severstal has some major debt to pay. The Nord Gold IPO has but one motive, that is to raise capital to pay down the massive debt Severstal has on the books and perhaps if Severstal is LUCKY make a little profit. Knowing this Gold bull run will not last forever if the IPO fails expectations Severstal will have no choice but to sell assets while they still have time regarding Au bull run timeline. As many have already stated HRG is the ace in Alexei's hand of cards, out of all the Nord assets we are the diamond. The best if not the only asset any other mining company would be interested in, This coupled with the fact that the minority holders have proved time and again we are not bending over for anyone. Though it will take longer to recognize the true, fair value of our investment IMO it could be the best thing to happen for HRG minorities. If Severstal won't promote us to logically raise the value of the IPO, If the IPO fails expectations you can be sure they will promote the hell out of it to sell their interest in hopes of saving the steel business. Up to and including this present moment Severstal has not made one logical decision with regard to promoting HRG, Lets see what happens when Severstals future literally depends on HRG's performance and marketing
Comment by
katchum on Feb 03, 2011 5:14pm
I'd rather have an IPO + 30% and then I can move on to another stock. There are many good ones out there like: KGC, SAU, SA. The sooner the IPO the better, otherwise I'll miss my trains/boats.
Comment by
1marketmaker on Feb 04, 2011 9:20am
Totally agree with you ThyFish. I'm not going anywhere. If this drops, I'll just do what I did last week and buy more. But it will not and when it climbs it will climb 10% in a day.
Comment by
katchum on Feb 04, 2011 9:22am
I never talked about FIU so I don't know what you are talking about.But I'm also getting emotionally attached to HRG and that's not good. I take comfort in the fact that it's still a gold company (and gold will go higher) so the risk is not as high as being emotionally attached to let's say a chinese smallcap company. Basically I'm really fine with HRG as it is.
Comment by
ThyFish on Feb 04, 2011 9:38am
My second paragraph regarding FIU was addressed to Prouditalian. Yes i agree that the downside risk seems to be minimal at this point and if we keep moving along as we are we should be at .28 earnings per share come the end of year which would only be a 4.39 P/E ratio.......pathetic....we're moving up!! Trust me!!ThyFish