Potpourri: Baja share price 1. Management cannot do anything major about the share price and management should not attemp to do anything major about the share price.
2. It is up to the market to set a share price. It is up to buyers and sellers to set the market (sometimes in a rational manner but often in an irrational manner). It is up to the security regulators to keep the market open, transparent and honest. It is up to the companies listed on the market to tell the truth, the whole truth and nothing but the truth.
3. If the Baja share price has been/is being manipulated, such manipulation is not apparent to me. I bought 25,000 Baja shares and 25,000 Baja warrants in 2007 when the share price remained above $2 between June 1 and Nov. 22, 2007.
After Nov. 24, 2007 the share price slid downward to $1 on Aug. 8, 2008. Subsequently it has traded in a range averaging about $1 per share over a period of 3 years and 8 months (Aug/08 to April/12). The share price volatility is attributed to the world wide financial meltdown and to the 2010 Boleo debt financing closing.
I can vividly recall Mr. Greenslade saying in mid 2010 that the last thing he wanted was an equity financing for Boleo in a depressed market environment. Well, he had no choice. The convenants attached to the debt financing for Boleo, compelled Baja to issue 167,325,000 common shares @1.10, on Nov. 23, 2010, for gross proceeds of CAD $184,057,500. This equity financing set the bar @ about $1 per share for the past sixteen months.
4. Today the Baja share price of $1 represent an implied market capitalization of MMB (the entire Boleo project) at about US $500,000,000. I cannot argue with the market. If, as and when conditions change then the share price will change. When we go into production, the project valuation will reflect cash flow, revenue and earnings. The P/E ratio will reflect the increased valuations. Share price increase will concomitantly rise.
5. The most important investing adice I have received over the past fifty years is to ignore short-term share price volatiliy (unless I am in the market to buy or sell). Corporate developments must be monitored; not daily share price movements. If I every became a day trader I would lose my shirt before the day was over. I won't lose my shirt over Baja. Don't you. Be patient. Patience is golden.
Doug.