TSX:SGR.UN - Post by User
Post by
cantleon Mar 30, 2011 11:50am
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Post# 18361216
Falling Share Price
Falling Share Price
This is a management problem, not a mining problem. They are nice guys, they know how to drill holes, play in the dirt, and crush rock, but they have no idea how to attrack investors by "selling" the investment. I continually see other CEOs on BNN promoting their mines. I have seen the call in shows where investors have asked about San Gold, and it seems that no one knows very much about the stock. It is managements job to promote the stock and that includes getting out on the road and making sure the everyone knows about San Gold. If they just want to stay up in Bissett and play "mining" , they should go somewhere else to play before they run this great opportunity down to a $1 a share. You can sell gold for a $1 oz. but if you do so on the 99 floor of a building and you never tell anybody about it, it does not matter.
It seems that their only way of attracting money is to dilute the stock with private placements that limit the upside on the stock price. They have the ability to be cash flow positive, if they choose. They can sell the gold they have and the gold they can produce, to fund their future projects. (One more private placement and I am out, I will take my considerable investment, I have a lot of shares, and go to a company that is share-holder friendly)
What I am surprised about is that all the investors behind the recent private placement, who are under water big-time, are not clamoring for management to do something about the share price. Maybe they know that it is a sound investment, and they are prepared to wait a long time.
I am not.