Heads you win & Tales you win.For those who get in early, Newport is about getting approximately 100% gain with little down side risk.
You are actually investing 50 cents to buy $1 of cash in the bank.
People can keep cash in a bank account and get 2% return; or they can buy cash at 50% discount and wait.
Some other companies will do better as they are leveraged with good properties. However such gains can be ghost like; they appear 100% certain until the day of judgement; then they disappear in a haze, for whatever reason.
A typical example is CSM agreeing to an LRR buyout for less then $20 million with 140,000 oz imminent production. Go figure !
A Newport investment, is about taking a small part of your portfolio and getting nearly 100% return virtually guaranteed lock in. Buying cheap cash at 50% discount, is a good investment strategy in this market.
In early January the market started to turn, and many stocks floated up 50% on no liquidity, the sellers disappeared and buyers had to pay substantially more for the same assets.
Management will get a great property because they are very well connected. They know they have to strike at this moment of greatest opportunity.
Shareholders will get a multitude of returns on invested capital.
I believe management will model Newport on a Northern Orion staring cycle. It will not be as big as the Northern Orion play, but it will be a property of substantial merit. The market will be very receptive to a repeatable story like the Northern Orion model; it will get the market juices flowing.
If management brings an average property to the table, you will still get a 100% gain.
The current burn rate is very low.
Heads you win & Tales you win.