GREY:AUAYF - Post by User
Comment by
ehmuon Mar 03, 2011 12:23pm
662 Views
Post# 18225703
RE: Market misunderstands reorg
RE: Market misunderstands reorg
Just a few thoughts on your query about valuation for AUA.
The undervaluation of the project was a result of:
1. the uncertainty in the public sector regarding the validity of the mine site as presented by the dissolution team to the courts.
2. the exorbitant costs of dissolving the company, to the advantage of the underwriters and disadvantage of the shareholders.
3. discounting the value of investment in the assets to date, to the advantage of the underwriters.
4. part of the price decline since the reverse split is likely due to the short selling activities of a large body of secret sellers.
Prepare yourself to take advantage of bargain basement prices of flow through shares in an access road to a potentially marginal molybdenum claim. I predict that there will be continuing waves of dillution in this mining prospect.