RE:RE:RE:RE:Positive angle of the financingWhen the stock is trading well below the issue price, it is not oversubscribed. Those brokers who asked for it would happily give it back right now if they could. This was clearly NOT marketed well. I have no idea why. Barcode is absolutely right.
Also, I remember when there was delight that BMO and Canacord were on board to help them. Why is this different? They messed up the last deal by not requiring BMO to cover. Now that they have changed underwriters it is no surprise that Canacord drops them to the back of the bus.
It is clear that RBC and GS are not supporting them, not adding muscle to this deal. Talk to any RBC brokers, this deal is quiet, not a priority at all.
It is a very small deal in the grand scheme of things, and at the current mkt cap it would be hard to get any institutional traction. FL tells the story so badly and quietly that retail just is not there. That leaves this mess.
IR is a hard area to get right. It is an expense with no obvious benefits. You cannot definitively point to any one event and attribute the value to IR. The cost of not doing it is clear. Dilution at lower levels relative to your peers, and that is a damned expensive mistake to make. Look at the relative value of PMET vs FL. PMET is farther away from manufacturing locations, their grade is inferior, they have not proved up large reserves and yet they just raised $20 million at a valuation that was above FL (yes, it was tempered with flow thru deductions that alter the ratios a littel, but they got the cash for a lot less dilution than FL did). Adjusting for the Flow through, PMET raised at $550 million, FL at $450 million.
If the asset is as good as we believe, this current mess will heal up in a few weeks, but we all lost a little when the stock was diluted at lower levels. The Walker family lost more than I did, I hope they are beginning to understand this.
Do not hype the stock, do not lie or inflate it, just get the story right, clean up the presentations and get on the road and tell anyone that will listen what you have. Make outgoing phone calls, follow up inquiries, and build a group of raving fans who will hold your shares for the long run.Do quarterly earnings calls to get the message out. It sounds easy, it is not, and these guys clearly haven't made it a priority.