OTCQB:NVMDF - Post by User
Comment by
BFREE2on Jun 29, 2011 6:16pm
314 Views
Post# 18781877
RE: Perplexed by the 8 cent drop in share price
RE: Perplexed by the 8 cent drop in share priceAs has been suggested here already (in so many words), maybe the HMI shares being sold now were bought simply to acquire shares in Stakeholder. If those people placed the majority of the potential value in the gold and not in the rare earth, then selling whatever HMI they still hold does make sense.
1,000,000 shares of HMI bought at 15 cents = $150,000
250,000 shares of HMI valued at 18 cents = $ 45,000
231,250 shares of SRC valued at 36 cents = $ 83,250
Current loss appearing on the books = $ 21,750
HMI valued at zero cents + SRC valued at 65 cents = $ 150,312..........Initial investment secured.
Of course SRC has to make its way from 36 cents up to 65 before things are even, but we all know how these things can play out with just a wee bit of frenzy. HMI from 10 cents to 20+ cents and on more than one occasion?
Why?
Ah, no reason.