Post by
Fortunas on Aug 30, 2023 1:04pm
Liquidity
This stock has effectively gone no bid and no ask. I was buying expecting it to continue trailing off towards zero or bouncing around until something happens. Buying because it's now "trading" (scratch that, it's not trading, it's priced in "the market") way below what management recently decided to pay for the minority Andora shareholders' stake, and while management and board might not be the best ever, they're not completely stupid either. I wouldn't be surprised if they're happy to have the share price near zero until they've bought out the minority interests in the Sawn Lake leases for pennies. The only problem with that is that the person commenting on the lack of cash was correct - stock is now the only currency they have to buy those interests with. The NPV estimates in the resource report for Sawn Lake aren't based on a realistic development scenario and need to be heavily discounted for a variety of reasons, but they aren't completely irrelevant to valuation either.
Comment by
Fortunas on Sep 19, 2023 11:12am
And when there is virtually no bid or ask, the share price can bounce around like crazy...on very small volume the stock is up 29% and the bid ask spread is 0.135 to 0.18. If they were to announce that someone else had an interest in Sawn Lake, this could fly.