Post by
netgenx on Feb 20, 2014 11:36am
bought deal - good news/bad news
first, nothing too surprising here. Stock was at an all time high, and the number one rule in mining is to raise money when you can, not when you need to. Historically, post-PDAC mining shares take a bit of a breather, so I suggest this is probably as good as it gets. If you look at a five year chart, 4 of the last 5 years we have traded down from here. My guess is that at some point this year we see $2.20 again. As for the $40 million line of credit, you'd be surprised at how quickly those funds can disappear if the bank doesn't like the market. What's the worst that can happen? They don't use the money, and it goes to buy back shares at some point. I can live with that...
Comment by
mjh9413 on Feb 20, 2014 11:55am
I am aggrieved but all I caan say to your idea is "that would be a stupid way to run a business for the mid and longer term benefit of non-insider shareholders." You know that the sad and bad part of this is that it was probably the Agents pushing the sp up beyond $2.28 and the same people selling greater volumes at the higher levels before the news came out!!!!
Comment by
Wisdomwithage on Feb 20, 2014 3:58pm
Hey Mates, It's better to shake out the weak hands and penny clippers now, clearing the decks for a renewed upward move. Those who bot the pp are in it for the long term, and has been pointed out, the fundamentals haven't changed. Cheers