RE: RE: RE: NO INSIDER IS SELLING Could be. 59,000 shares at $014. Is that a good deal for the buyer or seller?
What is this company worth and what is a reasonable share price under current market conditions. Assuming at these APT prices that the company is operating on a barely break-even basis to generate the cash needed to pay it's AR and short-term debt obligations. If we take the value of plant and equipment mine development work that they've invested in, in only that past 2 year's upgrade cycle, we're looking at almost $50million less depreciation/amortization. If we factor in the value of the exploration work for resource definition and the tax credit value of that work and we consider the value of the resource base that Cantumg and Mactung would fetch were it to be auctioned should the company chose to do so, or in the event of a court ordered liquidation in the event of a worst case liquidity cruch, we're probably looking at another $10-25 million, which if nothing else would offset the depreciation of the tangible assets. So... a real value of $50-60million is a reasonable enterprise value discounting upside from APT price turn around and no disaster at the mine. So share market prices should reasonably be around $0.20 while waiting for the turnaround.
If someone is willing to sell their position at $0.14 I would assume it is not someone looking to liquidate a 10,000,000 share position when the average movement is less than 50,000/shares per day. In my estimation someone selling 59,000 shares for that price left $3-4,000 on the table, and trying to sell 10million shares on the open market would ensure they were leaving hundreds of thousand of dollars there. So if it is an insider, it is likely someone who needs to raise a couple of thousand to do some personal financing, and not very good at math.
More likely it's an regular investor who just capitulated and decided they were tired of waiting for a turn around or feared the SP might drop to zero if the current market conditions continued, ignore the other strategic option to simply defaulting on credit lines and declaring bankruptcy.