GREY:MLKKF - Post by User
Comment by
bjorn3d2bon Sep 19, 2009 8:22pm
505 Views
Post# 16321771
RE: RE: RE WHY WHY & WHO ?? not me..
RE: RE: RE WHY WHY & WHO ?? not me..Risky,
I don,t think the number of shares short is large enough to matter where the sp goes. It is normal to have these hedges in place. The action on Friday was very interesting at the close I have no idea why the buyers were jamming to own the shares so close to the close.
Personally, I think the shares are very undervalued as a result of the number of shares that have had to be issued since our blowout low at 35 cents. All these shares have created an opportunity to buy value. Much has been accomplished and Mineral Park will reach its full producing capacity and soon to come lowered debt. That makes ML a buy just on the merits of earnings power all the way to $4 where it is still cheap.
I doubt the price will ever see $2 again in this new cycle and it will likely be bought out before the next one. I also do not see any premium built into the stock price for a buyout which tells me there is not one coming soon.
When ML announces the refinancing of the debt shareholders will also need to calculate the benefit and price the stock accordingly. This financing at $2 is the most exciting development for the company to date as it will free them to finish the job and realize value for the shareholders. I think it is also important to note that this financing was done a great price with NO warrants and was oversubscribed. Just by adding up the distance that this company has gone you get a winner.
I cannot trade out some stock until we get to a fair value in my view $4 - $5. I will still carry a larger than normal position going forward because I believe the company is worth far more than that looking out a few years. Of course it all depends on the world economic situation and metal prices but that is another call.
GLTA