Why I am skeptical...Try and be objective here.
There are those who think gold is going to move over next while. These people are interested in situations where there is an asset base, infrastructure, possibility of expanded reserves, undervaluation, current production and increasing production contemplated, with costs under control.
High River has most or all of this. You can argue about costs, but these are predicted to drop, as the production contemplated comes on stream. As well they have this huge silver hoard, which they could just sit on for a time, if able to and need to.
So then why the price at these levels? BECAUSE there are sellers who need cash, some say? Because the cash on hand does not seem capable of getting through to the promised future cash flow? Because of something else maybe, that we do not know about. Take your pick, but the BIGGEST issue for sure, is WHETHER this managment and BOD has steered High River Gold into a position where they can't survive. It is the MOST BASIC question, and NOBODY here has an answer that is seen to be reliable or based on fact. That is the issue.
IF this company has the cash, OR has the ability to fund this company on an interim basis, they should say so. That is a major failure in my opinion, and simply inexcusable. Why? Well do you think the performance could have been much worse????? What are they thinking, and more important what are they doing for current shareholders, many of whom have now gone, losing a great deal I would think.
Because, as I pointed out that there is a split in basic thinking with many folks, good managment has to deal with that reality, in protecting their shareholders interests. Do we have that here????
The split again, is with a base of people who think metals will move, and move big over the next while, against those who do not and see deflation of everything for a long time, along with those who need to raise cash at this time, because of redemptions, margin calls in accounts, or any other need to raise cash, regardless in this last case of whether they think metals are going to move up or down.
When you have a situation like that, coupled with many day to day operational complexities, you need GREAT management and BOD, to guide, plan and execute. As well they need to project confidence and the ability to see the job through. Do we appear to have that here???
I said before. IF High River EVEN indicated that the current managment and BOD have secured or have available alternate financing which would carry a plan, whether in some reduced operational mode or whatever forward, then this stock would rise, in my opinion. BECAUSE many would see a shot, based again on the future possibility and leverage of the assets. It would NOT in my opinion be trading at bankruptcy levels, with continued high pressure and selling every day at lower and lower price. What we have now, it appears, are those willing to speculate that we are NOT going broke, and that somehow there now pennies per share investment will have value. But without any known facts to base this on, as far as I can see. And THAT is simply inexcusable.IMO
Does ANYONE think that this managment and BOD does not know who is selling? If they were willing to buy higher, then why are they not buying at 1/4 the price now?
As for some conjecture here. Example, is Sprott selling. I doubt it, with their guy on board, as wouldn't that constitute trading on inside information?
How about CIBC, they any help to date?
What about drill results?
What about Prognoz?
Does investor relations even know what is going on. You read people here who talk to them, and they seem as puzzled as everyone else. Is that believable?
No, this is a real bad story, whatever turns out to be the truth, because it has been handled VERY POORLY in my opinion. This stock should not be trading at this price.IMO And if it goes bust, it is because it was not managed properly, before or now, as I see it.
So today say we get news. Big deal. It is too little, I would bet, if even good news, and very late.They are slow, awkward, and seem willing to let shareholders of record suffer. Isn't this the absolute classic case of either appearing to be fiddling while Rome is burning, or actually doing so. Take your pick, but the stock is where it is, and that IS REALITY, and they are the current managment and BOD. They should be addressing this NOW. What is their job again??? To protect( increase LOL) and manage the current shareholders value. Now that seems to be a joke doesn't it??
Further: they know who is selling of course. There are only so many shareholders on the list with huge positions, and otherwise somebody would have to be shorting the stock. If someone actually was shorting at these prices, then they would have to believe the company was going broke, OR have a deal in hand.IMO
Skeptical, yes I am. Poorly handled? Yes I think so.
Potential: it IS there, but who will realize it, if anyone? And if someone other than current shareholders, then what have these guys done for you? That is the question.