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Mosquito Consolidated Gold Mines Limited V.MSQ



TSXV:MSQ - Post by User

Comment by shootforthemoonon Feb 15, 2011 5:24pm
133 Views
Post# 18139201

RE: RE: RE: RE: RE: RE: $1.26 now $1.18...

RE: RE: RE: RE: RE: RE: $1.26 now $1.18...

4bluesky,

I must commend you, even though I am not as bullish on this stock as I once was, you actually have a reasonable target and are realistic.

2 points I have come to understand with this project.

1. Many stocks have said we have been approached, as they say talk is cheap. I got burned on one by buying into the hype, check out XE, this stock shot to $8 at one point on pure spec of a buyout. It does possess a vast area and looks to have quite a bit of U, but it was all hype no action by management and now the stock is absolute junk. Dont take Brian's word as gospel.

2. It would be peanuts, when looking at the raw figures but the market doesnt buy it and if the s/p isnt big enough the dilution will kill the value giving it a long term (and by long I mean 12 years to production long) for it to be worth $4. If thats a good return for you, take it, for me I got bigger fish to fry.

3. The absolute slothness of this management team is unbelievable, this project progress at near snail pace.

4. The size is without a doubt huge, I will give you that and that is what first attracted me to it. But, the companies bread and butter really is the Moly and if you do a quick run through how much they are saying they would like to produce and compare that to the Moly Market, well Supply would drive the price of Moly down quite significantly. If they produce the numbers they want to, $15 Moly seems unreasonable since Moly is only at $17 and change. The drop will be huge, and I dont think they will get the $15 Moly they are asking for.

The other option is to reduce the production number and extend mine life and get your $15+ Moly price but if you use your present value calculations, the NPV would be greatly reduced.

Best of luck to you on all your investments I dont foresee you losing much if anything on this but I dont see the massive returns either

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