RE: RE: Hidden Gem Up For A Massive SaleThanks victor for constructing a well thought out response. Your concern about ISM's involvement does present some management risks for Ursa. Like you said, it's unclear what will become of all this noise. Personally I treat this as a short term blip that doesn't change the underlying fundamentals of the company itself. UMJ controls an excellent Ni-Cu-Co-Au-Pt-Pd deposit and is operating the mine at healthy profits. Based on the current operating cash flows and SP, investors are getting their investment payback in just 3 years (IRR of 34%). This leaves another 60+ years of free cash flow and future discoveries coming to them as gravy. This potential, or realization itself, is attractive enough to get more investors on board. The stock has been underpromoted for years but it will one day find its place in the sun.
Although Inspirational Mining is technically an exploration company, it seems to operate as a holding company given its history of investing cash into other companies, acquiring big stakes, and spinning off assets rather than drilling extensively. Their management appear to know how to maximize shareholder wealth as I biasly use their 19.86% stake into Ursa as an example. I agree that they do not have enough resources to bring the fully expanded Shakespeare project online and are probably just holding their shares for investment purposes. Despite all the noise, ISM is bringing some attention to UMJ and that itself is a positive. It's in shareholders best interest that the company is known to the market.
Some folks out there seem to like ISM since it popped over 20% today. Pretty safe bet with over $17M on the balance sheet and a good interest in Ursa which ought to pay off for them. Perhaps these same folks will be putting some capital into UMJ as well?