well, one or two reasons I believe thatWhy I believe Signal is probably selling.
They had 8.3 million or so working capital Dec 31. Almost 3 million of that was flow through. So that money has to be spent on drilling. So not counting that, they are down to 5.3 million. the Narobi credit facility requires that they keep a cash balance of no less than $2 million dollar. So now they are down to $3.3 million for operating the company. They have had a very high burn rate the last few years on management and operating expenses.. So that money will not last long. Months. And that was as of Dec. 31.
Earlier in the month, the ceo and cfo exercised options at a price I believe was 28 cents. Now to me that is not a great investment when you could buy on the open market at 10 cents. I mean, if my management pays .28 for a stock that they could get for .10, do I really want them running my company?
Unless...
What if the company is running out of money. By exercising the options, that money goes back into the company coffers. It buys them an extra couple of weeks maybe. they get the money back in salary anyway.
And why are they paying directors with shares now. Which they have never done before. Just about a million shares for compensation.
And why are they paying a director I forget.... maybe 600 000 shares for their advice? That is just one of them.
So... end of the book. I think Signal is desperate for cash. And they had 23 million shares of MAE.
I expect they must be selling them, when you look at the above facts. Just my opinion.