GREY:CTMIF - Post by User
Comment by
M139on Jun 07, 2013 6:53am
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Post# 21496585
RE: RE: RE: Financials Filed
RE: RE: RE: Financials Filed I have been involved with quite a few consolidations and I will agree that for the most part that mechanism is usually more of a rinse and repeat process usually amount to nothing. However, in the rare cases that the company actually has some potential and does something quickly the upside can be explosive. Just one recent example of this would be Alpha Minerals. You have to admit at least that with a small float and should they hit something substantial in the first hole you would be in the money much quicker.
Also, doing any kind of share rights offering or even PP at this level would be huge dilution so your under 100 MM shares is not based on the reality that it could be much much more.
That said, as for trading aspects, well at the moment I am more interested in the potential investment value than I am in the prospects of making a few bucks flipping half pennies. So, for me the less illiquid they are the better at this juncture.
Bottom line is do want them to drill or do you just want to trade and penny flip? If you want drilling to happen than IMO consolidation followed by a rights offering provides the best value for existing shareholders.
M