Wheels Group Inc GRFJF

RE: Hugh & Russ

[loantech1]

Hello JM,
I do not know anymore as BNN has seemingly changed their format and it is harder for me to do a search down here in Yankee land.

I have owned WGDF, WGDFF, WGW since a pop about to $2.50-2.55 a couple years back  so riding it up and then now down this past several months has sure been painful.

Their last NR was healthy they said they were cash flow positive and that they were hitting the higher end of expectations for the 2nd quarter I believe they said but Mr. Market sure does not seem to care.

They chose to hedge and when they did the 801 figure was fine and either that or dilute. They were crowing that the hedge at one point covered about 90% of expenses but for some reason and I have no idea the market has gone cold here for my biggest holding. I am wondering but do not know as I am not the sharpest tool in the shed if that big Mark to Market loss they must record and the hedge itself is killing the stock?

Steve Saville does not like the hedge but I have no idea as the company seems to shrug off inquires. I wish they would use a big chunk of cash and some share dilution to pay it off. They should be throwing off some decent cash flow now so hope sooner rather than later what ever needs to happen does and we get WGW north of 3.50!

I am also a bit disappointed about  all the crowing about platform building and how this is the platform for growth but now that the stock has pulled back almost $1.75 per share it has been said it may be more difficult to put a deal together. There again my knowledge is not deep enough to know if a merge or acquisition could happen without a lot of dilution.

My wish is that some sharp and non stockhouse type posters could show up and shed some light on what they think is happening. Don't need any bashing as the market has done the bashing for that type of poster without them having to lift a limb.

Any chance we could build some decent postings here about Western Goldfields? I think the stock has many things going for it. High gold price. Ironing out the early production wrinkles. Seemingly a top group as the management team. Over 4.3 million ounces in safe California. It is safe IMO there are no permitting problems!Cash flow positive.

I would like to see how this most recent drill program went. Results should be out by now. Should add a bit to the resource.

Also the permit to move more dirt would allow WGW to expand production as much as 25%. That is a big issue and supposed to happen in the 3rd quarter.

Maybe management is waiting for the summer doldrums to finish and for the August report on the 2nd quarter to hit and then will start a media barrage. We can only hope.

What am I missing here?