Barkerville Gold Mns Ltd BGMZF

RE:RE:RE:RE:Happy/Sad day

[2bricher]

Of course no offense taken.....

The dilution is already happening if you are paying attention, not in a major way, but enough to note.

By a rollback, I mean a reverse split or share merge. Basically the company will announce some ratio of reverse split say 5-1. So for every 5 share you own you will now have 1. If the shares were worth $1 before the roll back they will be worth $5 after the roll back.

Technically us shareholders will own 1/5 of the number of shares but the price is now 5 times higher so we should come out even. No big deal right?

In the resource sector most cases of a rollback of shares the share price will tend to drift back down to a lower level. There is exceptions to this rule, but I have seen it enough that any talk of roll back signals time to leave for me. The one exception for me is IF the roll back is occurring to facilitate a higher share price in order to move to better exchange (ie the TSX in this case). I can see this being factor with BGM, but if a rollback is announced be sure to pay close attention and ask how this will benefit you as an investor. 

I have had money wrapped up in BGM for 5 years, I made allot of it, so I am happy I invested with them, but I just dont see a dramtic upside anymore to keep six figures wrapped up (though I would not be shocked if it got close to $1.50) I don't proclaim to have a crystal ball here, but I no longer see the correct conditions for BGM to explode. On the same token I don't expect the bottom to fall out either.