RE: RE: What is really best for us smaller shareho @ ValuI...
Well, as I said I don´t like that PP either and I think that there are better ways to finance the company.
I am just of the opinion that Goldmet is more problematic.
I said not "doubling your position" but adding to them. MMY has a PE of below 2 and even if they dilute the shares 80% then the PE is still around 3. Also pls. keep in mind that you could currently buy lower than the PP price!
So when institutional come in at 0,50 CAD then it shouldn´t hurt you to add to your position for around 0,43 CAD.
If they proceed with the PP then I think the best reaction for me as a small sharholder is to pick up more shares below the PP price and try to keep up my % holding of the company on a diluted basis.
I think your example with "buying your car or house for the second time" does not really work. MMY needs the money to add value to the company. So your example should be: do you want to pay money to renovate your house and add value? Well, there is nothing wrong with it, isn´t it? Of course I would also do it with debt or something else and not equity at such a low level but I know that Bob doesn´t want to get dependent on any bank or royalty company. I don´t share this a 100%, but I accept this...
Then when you think it is better to align with Goldmet, pls. look at the PP that they had on their table (NR Oct. 17, 2012). 52 mio. shares @ 0,45 CAD!! There was an outcry and it was right! I am glad this is off the table and prefer new groups to come in at 0,50 CAD than Goldmet become even stroger at 0,45 CAD! That is at least something that any savvy investor should agree with unless the Goldmet group itself ;)
Conclusion: I agree that the dilution is not the best for us but I am of the opinion that it is better than getting more and more dependent on these doubtful Goldmet guys. How can it be that they wanted 0,45 CAD shares for themselves and now they complain about dilution at 0,50 CAD to the supervisor and play havoc??!! That says all to me and I rather prefer (not like!) what the MMY management is doing right now...