Your post seems well thought out and written but the fact remains that DBV is apparently experiencing difficulty raising funds for what is being touted on these boards as the next great discovery. Without cash in the till the mineral claims mean absolutely nothing. I am starting to wonder if the inability to raise funds is a results of a lack lustre property. I thought the last results where good results. Not fantastic but good. They showed promise. I am surprise that raising funds is proving to be so challenging. I don;t expect to see any results now until September. If they are no better than the last results this stock is going back to 5 cents imo.
lifegoeson wrote: I hope this is a good summary of the game plan for DBV - bored here Sunday morning, so here it goes. Either put me on hold or enjoy to varying degrees.
As history has repeated itself over and over again in the stock markets, you can't make a lot of money until the markets are heading in the right direction. The broader market has had a great run over the last couple of years, it is now time for this money to move down into the juniors as people have more money to play speculative stocks.
The resource sector has been on its knees for a considerable time now with almost all junior stock runs being cut short as sellers continually monetize their positions at the earliest possible time (I was one of those sellers as you know). Also the modern electronic age of trading has complicated and allowed for early profits and rapid churning of the market.
DBV has been one of those plays caught in the middle. Farshad has found a great property ("HAT") but it has been a very tough cycle creating tremendous churn around what I consider to be pennies. Yes the stock price has gone from pennies ($0.04 or to to $0.40) but the fact is this is still pennies (some are happy but I want more). In a good speculative market, the price of junior resource stocks would have easily run $1 or $3 and in many cases run $5 or even higher (I have been involved in these bull cycles many times). This is when huge profits are made and people tend to hang on to their positions. Unfortunately, DBV has paid the price as in little over one year of trading it has traded in excess of 100 Million shares, yes I said 100 Million shares, day traders and market makers played, electronic trading intensified, and the final result is the price only just touched $0.40 and rapidly pulling back on "reasonable" results forcing Farshad to do a $0.16 financing to keep the drills turning. In a good markets, he would have financed this around $0.50 or higher.
Where are we now? I believe the stock has played rather well in this type of market - woldn't you agree. Everyone has made a profit, some up to 5, 8 and even 10 times money (not bad I would say). We are now at the gates of heaven, the stock is consolidated, and Farshad appears to be capable of raising the capital to keep the drills churning, thus there will be a lot of news coming.
I belive a good move to the $0.50 and above is well within reach if Farshad can demonstrate that the current drill program is successful (it might already be but we just don't know yet). Investors need to hang on and not sell since the $0.16 financing is the signal that we are heading higher once the financing is closed. I believe results are being held to some degree. Also, money is required to continue drilling into what should be good "rock", otherwise who would bother putting the money up.
The only downside is the growth of DBV's capital share structure. However, I must qualify this statement, there are still only around 84 Million shares fully diluted, with 53 Million available to trade today (with Farshard owning about 12 Million), the remainder is in warrants and the last placement tied to a 4 month hold. We have another good kick at the can - wouldn't you say.
The lack of reporting to shareholders is a bit worrisome, but again Farshad has played many, many stocks and involved in other Public shells, so he knows how to play and how is salary is paid. Some would say Farshad with 12 Million shares has the most to loose, but I would rather say he has the most to win. The property is being proven and if, and when, there is a consolidation (high probability once the stock passes the 100 to 150 Million fully diluted share structure), he will have the largest single share position (even with a 1:10 consolidation he will have 1.2 Million shares left, and a fully resourced property), the rest will have very little left unless you have a massive position (like if you own 50,000 shares, you will be left with 5,000 shares). I definately don't believe he will be forced into a consolidation for quite a while given the good cores he has been pulling, so let's not worry about this for now in the short term.
Bottom line, now that a $0.16 financing is about to be filled, I may even have to buy a few more shares (this is a classic time to buy - wouldn't you say). There is clearly more coming, hopefully the news is good, and hopefully a better Investor Relations program is in play to move the price over $0.50.
See everyone at the end of the tunnel.
Now you can see that Goldbull and Kenmoor are right. Hold, buy, and enjoy the profits. They are long term players but also very experienced players. They particpate in Private Placements because it yields a warrant kicker (very smart wouldn't you say). So let the games begin soon or let the drills keep turning and keep everyting secret, one way or the other, this has all the historical signs of playing higher prices very soon.