OTCPK:MEAOD - Post by User
Comment by
joe_trouton Feb 13, 2011 2:55am
459 Views
Post# 18124680
RE: RE: RE: FACT on MTO
RE: RE: RE: FACT on MTOHello sp_investment. You have given reasonable possibilities for all that could go wrong with MTO. That's the downside view. I give that about a 2% chance of occurring. The upside is the 98% that they will pull through with some scars that will be eventually forgotten. Once that occurs, this stock will be worth many times today's valuation. As an example, I bought GGC (now SLX) in its darkest hour at 0.25. What was lost in all of the selling was that they were sitting on hundreds of millions of ounces of silver. It didn't take a genius to know that all GGC would have to do is partner up and get out of their little problems and they did and I made 400% profit in 4 months.
No doubt there are games being played on this stock and its panicking the weak hands, but they will be flushed out completely soon enough. MTO has options. They have support by Sandstorm, Sprott etc. No way Sprott walks away for a total loss if all MTO needs is a measly $15M. Maybe MTO has to dilute 100M shares. I bought in with that contingency as a possibility and MTO's valuation is still very compelling.
So bottom line, MTO is just fine. Could your 2% scenario come in? Sure, anything is possible but I highly doubt it. I will take the odds and I have loaded up. I am catching this falling but golden knife, if you will. I don't fear the downside since only a fool would think they can pick out the exact bottom every time out. I can wait out this little period of time with all of the negativity. In fact, I embrace it. The only time you get a good deal on a stock is when it has been knocked on its "behind" for petty reasons. MTO fits that profile.