WHO HAS DONE THE FLEECING?Hey Mates,
We're finding a lot of irrational comments and rhetoric being tossed around here, and through news releases. I'd like to make a couple of interesting suggestions:
1] take a few minutes and have a look at the year-end financials for RDI for the years 2006, 2007, and 2008. They can be found on the SEDAR site. Review briefly the sections covering "management compensation (including salaries) ", "consulting fees", administration expenses", and "travel". Now review the "income from sales" section, for each fiscal year.
Question: given the income generated from diamond sales, was the annual burn rate reasonable?
2] for those shareholders who purchased higher than the ..36 Pala offer (as I had), knowing that the entire junior market was heading into the dumpster when the formal Pala offer was made, that
the only reason RDI had not totally tanked and was still in the .20s at the time was because of huge buying by one or two "outside" sources, would it not have been better to take the .36 offer at the time, cut our losses, and be around to fight another day when markets improved?
Question: did you know anything about Pala other than what RDI management and Board members wanted you to believe? Did you ever ask yourself where all the massive selling was coming from - that the "outside sources" were buying - when management and the Board members were busy telling we the retail shareholders not to go for the Pala offer, and not to sell
our shares?
3] Once the RDI marketing machine convinced enough to reject the Pala offer - after tens of millions of shares had 'come out of the woodwork' in the high teens and 20s, all purchased by <Pala> on the open market - Pala finally got frustrated and withdrew their offer. What happened to the RDI share price?
4] when RDI subsequently drifted down to the .02-.03 range I and colleagues began buying hundreds of thousands of shares. While we were buying in the low pennies, who do you think were still selling, likely for tax loss purposes? And if those of you who are still RDI supporters and apparently still convinced that our current and past "management" and "Board members" will save you, why were you not also buying in the .02 - .03 range?
Answer the above questions and you will better understand why I, a former supporter of the HD Group am now ready to side with Pala, and join a potential class action suit which seems to be in the wind.
Make your own decision, but please, make it an informed decision, based on facts, rather than rhetoric.
Cheers,
Brit