DNT-- Time upIt is frustrating to see this stock going nowhere. However, as so many companies been taken over, it becomes harder and harder to find a good one now. So, as DNT puts more good news out, I can just putting more of my money in it alone the way. I felt there are three issues with DNT.
1. Joey is greedy. It can be good at the end. But, without her, Candente could be sold by now for about 2 dollars per share to a major. Depending on over all commedity market, she could be right. But, she may just over play her hand. She remind me Margaret Witte.
2. The Canarico project is not on the radar of anyone. It is a very unique property, which could be a project cost less than a hundred million to start and producing well over a 50 million pounds of copper in 2012 at 50 cents per lb production cost. However, poential of making excess of 50 million dollars of profit per year does not mean that the company should be priced on that basis. First, they cannot get there by themself, unless there is miracle. They will be plauged with construction problem, cost over run, equpment breakdown. In addition, they have to do at least 30 million dollars of equity financing, which will double the number of outstanding stock at the current stock price.
3. Like playing poker, from now to the end of the year it is time to fold, or they can merge with WRN (or company like WRN), which has the wall street cache and the money, but with no real project on the book.
The funny thing about wall street is that perception is the reality. If they go alone, they will never get over 3 dollars US. If they merge with WRN, they should get at least 5 dollars US, when major take them out.