Plain and simpleFirst off this is a real company with real assets. This company has an excellent chance of doing everything they have set out to do. This company said that they are going to prove up Kobada and well that is what they are in the process of doing. It is taking time but all those who are patient will have a good (not guaranteed) chance of success on this play. No one knows for sure why the SP has drifted lower but my sense is the following.
1. Almost anyone can read a balance. AGG was running low on cash when trading at $2+. The company needs money to run its operations and so almost everyone knew that a PP was coming.
2. The company wanted the HIGHEST possible price for the PP not the lowest.
3. To suggest that only insiders and friends get to participate in the PP is frankly just not correct. It is on a best efforts basis which means anyone can take a piece. Just call Westwind and ask for a piece if you want one. It is not exclusive to anyone and it is not a bought deal.
4. My suspicion is that someone or a group outside the company, caught wind of the companies' need to raise cash and put the stock under pressure for obvious reasons. This is just conjecture on my part. The company has no interest in keeping the SP down. It benefits the company nothing to do this. A P&D may do this but not a serious company.
5. They will now have cash in hand to complete their objective which is to drill the rest of Zone1. Remember this is only 10% of the entire strike length. I think it wise to methodically develop this world class asset. For the most part it keeps away the pumpers and dumpers, etc.
6. This is a serious company with a serious asset and the know how to get the job done.
7. They could have done a large PP 10-15 million and be done with it. Caught between a rock and a hard place they needed to raise some cash to keep things moving but gladly not too much so as to be overly dilutive.
8. This stock still has only 25,462,665+3,000,000=28,462,665 shares fully diluted. Still very low number of shares out.
9. Yes John Embry is a supporter of AGG. He spoke well of both management and their latest drill results on ROBTV a few weeks back. He understands the mining business better than most. This is what he said:
"BUY John Embry Operating in Ghana and Mali Good management. Most promising project is in Mali. Extraordinarily cheap. 2007-02-08"
10. This is just a bump in the road and will quickly be forgotten once the SP rises. Do your own DD and either take a position or sell and find something else you like. The decision is yours. From John's comments of just a few week ago it looks like he has done his DD and is staying put!