If I were Duane Nelson....It's all about LEVERAGING. Leveraging time, leveraging effort, leveraging money.
That interview James Anderson gave last year - how much time did it cost him? How much effort or money?
Nothing. It was a drop in the ocean.
And yet thanks to the internet that interview stands as an enduring marketing tool for Silvermex. It's a way to shape a narrative, get some more of an informal picture painted for prospective investors.
If I were Duane Nelson I would start giving interviews left, right and centre. Maybe it would even be better to do controlled, written interviews. After all, the purpose of giving an interview is not to field whatever the interviewer wants to poke you with; it's to get your story out there. It doesn't really matter what people ask: Duane should be able to twist any question round to getting his chosen message out. It won't take long to sharpen the focus up into a standard interview content where all the right buttons are being pressed in all the right ways to attract investors. He should repeatedly mention the GoldMinerPulse website and the extreme undervaluation at which it estimates Silvermex to be.
We all think this precious metals bull market is going to go mainstream over the next couple of years. How many of the Silvermex investors of the future are going to be mining professionals and how many are going to be laymen?
We talk aboout the silver: gold ratio falling; well, I believe that the ratio of mining professionals/ professional investors to laymen is going to fall; or to put it another way, the ratio of laymen to mining professionals/ professional investors is going to soar.
The company needs to start thinking realistically about how it is going to connect with the sector of society that is going to drive the Silvermex market capitalisation in the coming months and years. Dry news releases using words like "delineate", technical maps with wavy lines and different colours are not going to connect with lay investors. Lay investors want to be told a story, a clear story in an informal, colloquial way, simplifying the jargon and technospeak into simple numbers and facts that give them faith that the company is likely to grow exponentially. That is why the XCAP report on Arian was so much more wildly successful than Arian's corporate slideshow. Just like Silvermex could and should have its corporate slideshow translated.
Do this, and Silvermex will be a wild success in having all value priced into the stock.
My own suspicion is that the SLX management are not too unhappy about seeing the share price as low as it is because it will give them more time to accumulate cheap share options for themselves. Most people in life operate in their own self-interest. Well, the SLX management should understand that their self-interest, as directors of this company, resides in NOT breaching their first and fiduciary duty to their shareholders. We will not tolerate this stock being a wilful laggard in the market for no justifiable reason. In its prior incarnation as Genco, the stock was absurdly undervalued for far too long because of earlier problems and the reality that the man who came in to clean up the problems was not in a position himself to take the company forward. The people who are in control now are, and we should expect and demand that they take expeditious action to rectify this glaring misvaluation.
And Fiona - seriously, what the hell were you thinking? You couldn't have offended and undermined the confidence of shareholders more if you had tried. Some IR achievement. But there is much you can do to change our opinion and market sentiment in quite short order. It's all on this board. But you have to ACT. Sitting around in a meeting muttering about insurrection by annoying bolshie shareholders on a trivial bulletin board is not going to quell the simmering discontent, it's not going to put you or Duane and any other of the directors in firm fulfilment of your legal and fiduciary obligations and it's not going to put this company where it should be in the market.
We expect and demand effective remedial action. I'll tell you this much: because of the failure thus far of SLX management to take effective action to rectify Genco's extreme discount in the market, if someone else came in with a hostile bid at the moment, I wouldn't be minded to to vote against it.
ACT