RE: SP ''''Manipulated'''' downwards/ TRUST_N0_1Well to start off TRUST_N0_1, I did answer your question about my connection to this company on the same day you asked it, back on May 27, but you either didn't read it or forgot about it. Here is the LINK
https://www.stockhouse.ca/bullboards/viewmessage.asp?no=14843596&t=0&all=0&StartDir=N&StartID=14689696&StartDateTime=2007-04-18
Anyway, and to repeat my answer, as it is the same today as it was back then, my only connection to this company is by way of me being an outside the circle Retail Shareholder. Nothing more! Nothing less! Nobody, that I know of, works for SGA or GCX.
As to your other question, if am I sure that SGA will sell these shares at $1.30, I answered that question here already to. I said that nobody knows right now what these shares will sell at as the company did not say, but I felt they will sell them for around $1.30.
I also provided some proof that this can happen, and gave you an example of when they do sell shares they can sell them higher then the present share price. I pointed out that Golden China Resources just sold shares to at $0.87 and their shares were trading in and around $0.60 for quite some time. The PR is on the Stock House GCX Bull Board recently posted by me and the price history you can check yourself.
As I also pointed out in an earlier post, I figure that all the Big Guys are in this stock for about $1.00 and I showed you why I felt this way. When they did their IPO the shares sold for $1.37. With all the news and further exploration and the FS, I don't think they would want to sell shares below that price as all this news is positive.
But then I do not sit in on their Board Meetings. They know more then I do and perhaps they see a much larger profit in this mine then they originally thought. Maybe they know how much they will save on costs on an Alternate Energy Supply already, and this is why they need this extra money. So for them to sacrifice some shares now, to get the money they need to make this all work better, then it would be a small sacrifice for them to make.
One thing I do know for sure is that they are not running for the fire exit doors right now, and thus neither am I. Maybe they are the ones who want a lower share price, so they can buy more. I.E. Resource Capital Fund III.
But they would not be averaging down or up at $1.00, so I see no benefit in them to do this. They would hold more shares but the shares would be worth less. If the stock dropped to $0.90 or $0.80, because they could only sell shares at $1.00, they all would actually be losing money, and this does not make any good business sense to me at all.
So let me ask you now TRUST_NO_1 what makes you think these shares will sell for $1.00. I have not seen Haywood or Paradigm selling SGA shares by the bucket full, and I watch this closely each day, so have you? In fact because our volume is so low, this tells me that none of the Big Guys, who are holding this stock, is walking away from it now. So does this not suggest something positive to you?
Maybe a better question to ask yourself TRUST_NO_1, is that if they do sell these shares at $1.00, and at our current share price, what are you going to do about it? If our shares sell at $1.32 our total outstanding shares would be 105M. If they sell at $1.00 then our total would be 121M, or 16M more. Is that going to make you bail out and take a huge loss now, and if so, why?
TRUST_NO_1, you act like this is the first time you have ever been down on a stock in your life, or perhaps this is your very first stock investment. To tell you the truth, I can't remember owning any stock that I ever held that at one point I wasn't below my buy in price, and yet I have never lost money on a stock in my life yet.
Even when I bought AZS in August 2005 I paid $5.00 to $5.50 for them and one month later, by September, it was trading at $4.00. I paid $1.60 for KRY but it dropped lower after that to $1.40. My lowest buy in price for SGA was $1.17 and I bought most of my GCX shares for $0.16 to $0.17 which would be $0.80 to $0.85 now. SGA is trading at $1.00 and GCX is at $0.60. I was only lucky on these last two stocks to catch the wave up, and sell some at their highs, and that I was able to recoup these paper losses because of that.
Your not the only one TRUST_N0_1 who may be thinking he paid too much for this stock, had we all known it would be traded at $1.00 now. I bought some shares back in at around your price to. But that is how the cookie crumbles sometimes. I thought a $1.40 was far too low for this stock then, and I still do. That is why I hold most of my investment in this company by way of Warrants, which are worthless until the price of our stocks is at least $1.71.
So I can understand your feelings as sometimes I feel I was suckered by this company to. Their Feasibility Study just came out in April, a month ago, and they used a total Pre Production Capital Cost of $72M. Even if you throw in the $13.2M Sustaining Capital Cost you only end up with C$84M so where in the Sam Hell did this C$110 come from and why was that not mentioned or used in the FS?
You might as well throw that FS in the garbage now as all of the Pay Back Periods would change. Which is no loss to me as I felt they should have done that anyway, and in the very first place. But the question is, did they not know this one month earlier that it would be C$110M and not C$72M? If so, are they just playing us like we are some sort of fools now?
But the only thing we can do about this is TRUST_NO_1 is either Hold our Shares, Sell them, or Buy more. Their is no use complaining about it as this will get us no place in a hurry. To me, all the fundamentals are still very sound here, and we will be producing a lot of gold their very soon.
I also think this stock is extremely undervalued right now, as I did when it was selling for $1.40, so I still do, so I am holding and upping my position when I get chances. Their screw ups with poor PR does not take that much away from the fundamentals of this good gold mine, or the surrounding exploration lease.
But if you are so concerned about what these shares will sell at TRUST_N0_1, why don't you just e-mail the company and ask them?
GB