Red Eagle Mining Corp RDEMF

RE:Gwen Peston just published newsletter includes Red Eagle

[WileyCyte]

Since the news broke MondayI think many of us have been saying the same things that are in this newsletter, . For the long shareholders who were looking at selling their positions sometime in 2018 (when it was thought the stock would be trading well above $1), this was a serious blow and a major inconvenience. Those who held are now looking at a 2 yr committment to break even, as opposed to exiting next year with profits. 

I remain steadfast that what I personally object to is the very obvious release of insider information that led to the slow burn on the stock these past 6 weeks. Clearly Red Eagle knew of the problem on or about May 31st, when the stock closed at .65 cents. And what I mean by they "knew" is that it must have evident back then that production would be halted completely. They basically kept SH's in the dark on this point for nearly a calendar month. In the meantime, friends and family exited their positions while the rest of us got f'd.

Gwen is right. The RO will now tell the tale. Mining is complex, expensive and risky. The change to a superior method appears to be the sensible way forward and I have no issue with the pivot to correct a problem. Blank happens and what ele are you going to do? Shutter the mine and write off an $80 million, 10-year investment?? Of course not.

I just wish the mgmt team had handled this better. It's been two days of mindless, senseless selling. Nearly every trade has probably been at a loss because people are pissed off. And that's squarely on Red Eagle mgmt. Full disclosure at the end of May was required. Yes, there still would have been a double whammy on the stock. But it would not have been as harsh. I'll go to my grave on that.  Many, many SH's watched the slow slide and were suspicious. But they didn't want to believe a company could be so irresponsible and stay stubbornly silent on bad news. Frankly to do is illegal. Yet here we are. Now those patient SH's who held are saying a clear FU to RE on a second chance.

I can't say I blame them. I averaged down today very, very modestly. I believe in the fix...maybe more to the point, I believe gold is still in the ground, regardless of RE's missteps. Going to take longer to get it out and it's going to be more expensive but I can live with that as long as this management team learn (quickly) that  investor sentiment is the only thing that will save their sorry company.