RE:RE:RE:93 cents?This year has already seen tons of money flowing into the junior sector. In January one could have thrown darts at a list on the wall and come up with stocks that are 2x, 3x, 4x what they were.
Now take TRX.....the price hovered around 80 cents us for most of last year. Gold started the year out at 1300, it is now 2000 at 53% gain. A 53% gain on TRX would be $1.22. Thats if it was going up with the price of gold. It is not! Its barely 10 cents higher.
Why the underperformance? DILUTION. 40% last year. Based on that 80 cent price, 40% fewer shares would put the price at.....$1.20. So what does he start the new year out with? More dilution. At least 39 million shares more with this new financing! Dilution is a price KILLER! It matters not how great the progress. Yes the future is very interesting and they may be adding more ounces to the resource....but the price cannot do much with more dilution. It has not even keeping going up with the price of gold. If one wants to buy this stock, it better be considered a very long hold. But why consider it, when everything else is doing better?
To someone who is considering TRX as an investment, I would tell them all the above, but wait until production has proven it can provide cash flow.