High River Gold Mines Ltd HRIVF

RE: So what is Severstal waiting for?

[Honkeybill]

    They didn't plunk down over 50 million in the midst of a collapsing global economy without some form of plan. It's their timeline now, not ours, and your either staying for the ride or headin on out.

    Why do they have to hurry? They could wait a couple of years and issue a special dividend to help them buy out the rest of us. Who cares how much you pay for the cow if your buying it with it's own milk. Pay off the debt, fill the company with cash and then start paying the cash out. 

    Think about it........in 30 months HRG is debt free with around 120 million in the bank (assuming a moderate increase in the POG)......a 20 cent special dividend gives Severstal their 60 million back.......and they are the majority owner of a company generating about 80 million in gross profit annually.

    Bottom line..........I don't think Severstal cares what the sp is. It has to go up, because every month the financials look better and better, but I don't think that's really a concern of theirs.

    
    Our concern? What would a company with no debt and 80 million in gross profit with 600 million of outstanding shares be worth? Gross profit of 13 cents a share? isn't that what they trade for now?

    Before you all line up to pound me.....this is cocktail napkin financial analysis....so feel free to bust all the holes you want into it.