RE: RE: What am I missing here Man, that other poster was right - pdcon = pump & dump con man.
.
You gotta be kidding me? You wanna value the company based on the replacement value of the mine?
.
crj valuation today at 60 cents per share , just over 100 million , you couldnt build SeaBee mine for that money
.
That mine infrastructure only has value to that hole in the ground. You wanna monetize it separately then look at it as 25% to 50% of book-value and subtract the costs to cut it up and move it somewhere else. THAT is the real value.
.
Look, you can fool yourselves all you want with all the games one can play with valuation, but until you start thinking like Pro Money, yer gunna make silly choices.
.
the only reason were 60 cents is the markets are in need of buyers , this is a market situation creating great buying opportunities .
.
No, the reason one is at 60-cents is that the company has next to ZERO cash on its balance sheet and a looming debt repayment in March, with no cash to pay it. What were the rosy predictions by Management when they took on that debt? That they would pay it off by the due date or keep rolling the debt forward? How did that work out?
So share price is being effected by the fact they are in a desperate situation in need of cash/refinancing. Don't forget that they need cash for "winter resupply" too or with no supplies, will they have to eventually shut down the mine? What would be the value of CRJ shares if the mine shuts down?
If they get a loan the terms are not going to be low interest rates, they are going to be in the 10% to 15% range or higher. The whole mine and perhaps the Madsen property will be pledged as collateral and the "sweeteners" will be either gold hedging [forward sales, gold loan, etc.] or massive dilution of some sort [equity kickers - LOW priced warrants [ITM] or Convertibles.]
But anybody think about what is CRJ's share price IF for some reason we fall off the fiscal cliff and the banks seize up their lending? What happens if CRJ can't get a new loan and can't repay the note? What will be the share price then? Would buying CRJ shares here be a great idea?
Oh, I know - that could never happen! Forget about it! So is there some other reason why all of the PhDs and wizards of smart at the Pro Money Firms aren't snapping up these "cheap" 60-cent CRJ shares? Or are the collective minds on this BB much more savvy and smart than Pro Money?
.
Bottom line: CRJ needs new blood, new leadership to turn around this company and make a BIG growth story! The sooner y'all wake up and start demanding more from CRJ leadership, the sooner you shares will be on track for 10-bagger style gains!