Metanor Resources MEAOD

RE: RE: flow-trough at discount

[sapiensunus]

Don’t worry yourselves … the entire market is playing this game.  This is not a unique MTO situation. Any time management goes to market they know they are “breaking bad”. That is how the stock market works. This is why exploration company’s get the tax benefit.  Long term producers (Barrick) are very familiar with this procedure.  That’s why they let the little guy do the exploration work… If they like what they find they make a bid on them. MTO is being watched right now and they know it.  

A common investor can’t make the sweet deals management and their cronies do because we are not on the inside. Common investors must wait and look for value then make the investment. They say 10-15 PE is normal for banks. BAC is trading at 32x earnings because P/E is supposed to be a forward indicator.  It should be 1 to 5 for value. Also, the P/B should be less than 1. That’s when Buffet made his deal on BAC.

The “open” market does not work that way – there are many variables coupled with market noise and confusion. Investors are generally cheap (stink bid happy) until the “story” changes for the better. Then they want in at any price.

MTO is trading below market value mainly because the entire sector is in the dumps.  The market was throwing money at this sector when GOLD was cheap. Now that it’s pricey (and currently running into some headwinds) investors are scared away because it will become difficult for producers. Soon the reverse will happen and the cycle will continue. It will eventually come out in the profit margin (if and when it arrives) and may they get one soon because most exploration companies will never see one... yet some are more expensive than MTO.

GLTA.