Took Initial Position... I made my first purchase @ $1.10....I will look to add accordingly!
I must say that I took an extra long look at this one due to the unusual moves made by Management...I will add with caution!
The Silver Production is what "caught" my attention...I am anticipating a significant run up in the Silver price moving forward and hope to profit on it with a play such as this one.
What do I mean by unusual?
Management initiated a dividend of $.01 last quarter...but...they only have 6 million dollars in cash on hand....strange to be sure! This does not leave too much room for error.
However, after a lengthy review going back a couple of years the story began to come together. They have no long term debt to speak of and the capital expenditures are in the most part behind them now and the majority of the profit moving forward will go directly to the bottom line.
I find it most interesting that and highly attractive the fact that once you factor in the major holders (players) positions and that of Management the remaining float is only about 100 million shares of the total outstanding shares which works out to be about 320 million..Nice!
Management holds about 15% of the outstanding shares which not only demonstrates a belief in the story...but...would point as to why they have moved to incorporate a dividend and I believe they will look to increase it moving forward...most important in my investment decision and will be very market friendly.
The market place for years has demanded a dividend from precious metal producers or an increase in existing payouts but it has for the most part fallen on deaf ears....Mandalay is listening and it appears that Management will be rewarded accordingly...I want a piece of this!
The dividend is a very bold move...it most definitely signals Managements confidence moving forward. We must keep in mind that the Management Team lead my Bradford Mills are no "rookies"...seasoned to be sure! The last SEDI report has him owning 25,856,446 shares.
In the past I have concentrated on only Gold Producers but I have recently changed this with my purchase of Fortuna Silver (FVI) and now MND...I cannot ignore the possibilities moving forward when it comes to the price of Silver....there is just not that many Silver plays available to invest in and if the money decides to move into this space....the upside will be significant.
Timing is everything...this company appears to be in the right space at the right time and have their operations in order and ready to capitalize on any silver price appreciation.
Digger144
P.S. It took me a while to get it...but...I did....we must not overlook the Silver Producers!