The upside is excellentMineralfields always buys their shares at the present market price.
That is a given. They do a flow through or a financing and get shares and the 'sweetener' of the warrants as they say and they don't need the price to rise at all to make 50 percent.
Their letters described to me a business model that does not have expectations that most companies will rise in share value.
So this is why I have great confidence that EFG is all about patience for Joe to finish with his 30 cent warrants, and then move on to the 75 cent warrants.
JSL deserves a tremendous amount of credit to have Joe do that financing at .40 and the warrants at .75. Incredible really that Joe paid that. The stock price for EFG at the time of the financing was .32.
Joe never pays up.
Joe paid up. Almost 20 percent on the shares and 140 percent on the warrants.
There was a reason. He will take EFG to the higher number of .75.
He would not have done the financing if he wasn't eventually going to see that financing of .40 to .75 make him money at that level, or at least break even at that level.
Look at all of the other financings that he has done. Google it. They are always priced at the level of the stock, and even lower in most cases.
In the future, here is how I have decided that I will invest in Mineralfields stocks, because I think there is gigantic money to be made in Mineralfields stocks, but only the right ones.
When I see a flow through or a PP for Mineralfields, I will see if the price he agreed to is the present day price. If it is,, those companies, I don't see big upside for, but just Joe selling.
However, if he pays up for a PP (like EFG on December 30) that is your indication that a well timed stock purchase of that company will be rewarded with patience.
Check it out. His confidence in the price he does the PP is eventually your confidence.
We are in excellent shape here. Except the waiting sucks.
And with that, I think I am done trying to learn about Joe. It has been quite the arduous journey started by ggrellette, and I think it is over for me. I have gotten a ton of criticism for embarking on this journey of learning, but a necessary one. If you are going to invest in the Venture, you better understand the machinations of the financier of over hundreds of those companies. If you choose not to understand Joe, then you have a head in the sand, can't stand the negativity mentality that is going to cost you dearly in the long run.