RE: RE: $2 ???
If you want to talk about lack of credibility - you better look in the mirror sweetie. You have been monotonously bearish this stock since it was trading less than a dime. I also don't recall you EVER posting a meaningful post.
Why do you linger on this board if you are so negative this company ???? Get a life .... What's your agenda ?
In my opinion, this stock is doing just fine. Sure, it is disappointing that big money hasn't flowed into this issue to drive prices higher - but the fact is - the company is still in business. It has made strategic alignments with key Chinese players. The exploration program is alive and healthy and largely funded going forward. The companies cash flow position is a heck of a lot better than it was a year ago. On top of that, exploration results are incredibly promising. I have no doubt that there are significant mineral resources on SDRG properties. To me, that has to be the bottom line. When the market decides to value the company for the resources they have is anyone's guess.
Regarding the most recent Tender Offer, there is no way to interpret it other than being a huge positive for the company. I, for one, would never consider selling a single share at the offer price. The financial instruments being offered just don't have the liquidity to interest me. What the Tender Offer does certainly confirm is that there are parties out there that have performed their due diligence and concluded that SDRG properties are worth taking a stake in. Probabilities have been greatly increased that shares will experience positive price action.
Yo's initial $2 price estimate was likely based on "Last" prices for each of the financial instruments offered. After further examination he lowered his estimate of the offer's worth to 70 cents an SDRG share to reflect the liquidity issues and he completely discounted the value of the warrants. The 70 cent number seems conservative - but in my book it does not mean a heck of a lot since SDRG shares are still trading less than 30 cents.
Directly from Yo's post:
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From what I see, the GII and MLM
shares are worth about 0.70/SDRG share, although MLM is a small company and GII is a relativelyilliquid stock. GII is an industrial Company based on Edmonton buttraded in Frankfurt, and has 77 million shares outstanding and a US$100million market cap, but averages less than 1,000 shares/day of
trading.
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So what is your point in misrepresenting what he said?
Most than likely, there is more behind the offer than is obvious. What it is we'll have to see how things play out. Sure seems very possible that those making the offer may well go on the market and purchase the shares outright. That obviously would be hugely positive - but more likely they don't have the cash.
I also find it curious that there is no mention of the news on the companies web site. Makes you wonder whether the company is as surprised as anyone else.
SDRG may very well linger at current prices for some time to come. Fair valuations will likely not be experienced until silver and gold are released from the shackles of blatant government/bank manipulation. It's anyone's guess when (or if) that will occur but it is obvious to me that there are significant stresses in the commodity market as evidenced by the premium in the near month and cash price.
As always, we'll just have to wait and see. But in the interim, Jimbo, it is YOU that does not have any credibility. Why don't you offer some credible analysis? And don't just point to the stock price action - that get's manipulated all the time .... and means little other than what you can cash out for today. The minerals in the ground are what counts ....