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MagIndustries Corp MAAFF

MagIndustries Corp is engaged in development and exploration of potash salt deposits. The company has two business units: MagMinerals and MagForestry. It is primarily engaged in the financing, developing and placing into production or operation of the projects such as potash plant, a potash exploration and eucalyptus plantation and chip mill. Geographically all the operations are functioned through the region of Canada.


GREY:MAAFF - Post by User

Bullboard Posts
Post by hkaasknownon Nov 08, 2010 6:32pm
321 Views
Post# 17676886

non-sense

non-senseTrying to see any positive angles, came up with a few possibilities, but also came up with counter-arguements as well...

1. The deal is close to be signed and the insiders wanted a last chance to buy cheap shares. This would make sense if it was a private placement, and it is not - it is marketed public offering. Insider trading restrictions would come into play as well.

2. MAA wants to move foward with construction so that there is no delay in the curent project schedule. It actually works against the longs as it would mean EPC is not being awarded to COMPLANT, meaning there is no deal.

3. They want raise 20% equity to go with European financing option. If that was the case, they would have announced it before announcing the financing so that the equty raising is done at higher sp.

No matter how I look at this, I can't find any positives. The management better explain why I should not sell my shares. Tomorrow could be a really bad day for the longs.
Bullboard Posts