RE: RE: RE: Finally....Hi there!
I don't think I'm missing the point. I understand it to be that the price between now and graduation day is really only just fluff. It doesn't matter... at all! Do I have that correct?
If so, I would argue that the interim price might matter a great deal in the event of a hostile take-over attempt. No shareholder protection plan would get in the way if a major decides to take a run at us. In cases like that, based on my "meagre" knowledge of the market, deals or pressures sometimes result in the safety net never being invoked.
Don't forget, our execs and Sprott etc have the shares to decide what is or is not accepted. And for them, time may be of the essence. There is such a thing as the "present value" of any future sum of money. When Silvermex's below the ground "possible assets are discounted to their present value, large shareholders may opt to accept an offer of money NOW, after they have got it sweetened up to their satisfaction of course.
I'm not saying that this is the likely scenario. I'm only suggesting it is a real possibility, and all our retail shareholdings would have a hard time fighting city hall.
But that is where the danger of being underpriced comes in. It is something that SilverInMyPants alluded to in an earlier post.
If I had a thousand silver dollars hidden away in my basement (which I don't!), then your argument would hold. It wouldn't matter a row of beans what others think they are worth. I would have them, and I can't lose control of them short of a robbery, or a police search. Their interim price would be unimportant.
But shares in a junior are a different ballgame! I can only hang on to them as long as no-one else wants them bad enough to force me to sell. The silver market is very small. I read somewhere that some companies such as Google and General Electric have market valuations larger than the entire silver market, certainly larger than the silver market if you exclude the few majors.
As silver makes these gargantuan moves upwards, it must occur to those with money that it shouldn't be too difficult to gain control of some of these companies for their own benefit. I think of terms like "the golden goose" or "silver spoons".
It is this sort of possibility that makes a low share price an open invitation. Even if they have to eat shareholder protection plans, they might still want to proceed. Might is right! We have seen the legal allegations against some of the largest banking institutions in the world attempting to manipulate or control the silver bullion market. Why should we not expect something similar with silver producers. There aren't many companies that are true silver producers. Most of the silver is mined as a byproduct of gold or base metals.
We are a beautiful, attractive, valuable and shiny treasure sitting in the jeweller's window, with the lights blazing on us, reflecting off our silver! They don't even need to steal it - it's being offered at fire-sale prices!
It is the present price that is our achilles heel, because that's where the bidding starts - down at the bottom!
But, there's an old saying that, "A man convinced against his will is of the same opinion still!" It appears to me that this particular discussion on the Silvermex board has probably exhausted the issues. We have, each one of us, settled into one camp or the other.
We are, in effect, wrangling at the Union Hall. If we have an issue with the handling of this matter it needs to be taken up with the Company, either at the AGM or directly by some brave soul here.
In closing, let me say that I have the greatest confidence in the Company's handling of geological matters, mine renovation and things in general. I just don't want to wait and wait and wait only to wake up one day to find that there is a takeover bid that, if it succeeds, would give me a double or a triple. Either of those scenarios would be nice, but there is the question of lost opportunities that would sour such an outcome.
Anyway, let's agree to disagree! We're all part of a family thrown together by virtue of our Silvermex holdings. To our parents, who see the whole picture, maybe we complainers are just a bunch of adolescents. But most kids worth their salt, stand up to their parents from time to time, which is what some of us are trying to do - and sometimes they're right!
sunwood