RE: RE: RE: DisappointedDid you read the financials, trader4ever?
The company needs to have more money if it is to pay off its debt and then start to actually exploit what claims it has. I presume that nobody but Mineral Fields wants CDO to raise money when it sits at the current price. And doing a share consolidation 5:1 and then raising money won't change the dilution one bit.
What CDO has is lots of claims.
Too many.
To the extent they are worth something, and they are, whatever any basher might say, CDO can sell them or do a JV and use the resulting deal money to pay debts, operating costs, and start exploring. Since they won't have enough cash to explore all the properties unless they sell some, that is the logical course of action and that, apparently, is what they have started to do.
The trick will be getting the deals done and effectively spending the excess cash to explore, not to buy more property related to whatever seems like a hot commodity that week, which is the tactic of a pump and dump speculative company, as opposed to a serious mineral exploration company.
The addition of Shives, who's an excellent Geologist with wide experience, at least is a start, especially when taken together with the obvious attempt to raise money in a way that causes no more dilution for existing shareholders. Just because the Market is not convinced that CDO has changed and is become serious, all of a sudden, after so many years, is no reason to give up now that Management may actually be planning to be serious and actually investigate some of the claims it has.
Of course, it would be useful if the company explained what its plan actually is, but I expect that formulating the specifics will take a few months and the details will depend upon which properties attract the most attention from possible JV partners, as well as which claims would be worthwhile to retain.