Risk vs. returnI think what some of the people on this board are missing is the risk/return potential when investing in VG. You see all of the risks are known, and as some of the posters have pointed out these risks are leading them to either sell or not invest. What are these risks: restructuring of debt must be completed soon, amount of debt outstanding is large, past safety concerns, and lack of positive track record. But what about the return potential? This stock used to trade at $9. The last research report I read had a target of $0.80 (even with all of the risks above already baked in) and that assumes gold prices stay relatively flat. So what if:
1) the debt was restructured and short term debt was turned into a much longer term liability as well some debt is paid off with an equity offering.
2) the safety concerns are dealt with quickly and this becomes a thing of the past
3) gold goes to $1400 or perhaps back to $1900 or perhaps even higher
Well, then we are looking at return potential that far outstrips any of the other senior producers junior producers or even exploration companies. This company will be making gobs of money at $1400 gold.
This stock is not for the faint of heart, but if you believe that the gold price will increase in the next couple of years, then this could be a multiple bagger...why do you think Sprott has such a huge investment into this company?