RE:RE:RE:I need something explained to me. 256.244 million in ......reefsandals4eva wrote
Thanks. I should have understood that, i was looking at book values and price to earnings ratios and i think i got a little flustered. You see companies with much less shareholder equity go high in share price and it doesn't always make sense when you're buying equities.
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Yes i am sure there are many people especially those who have held this stock for a long time who are more than a little flustered with it.
Although the assets are low grade i am sure that all the money that was poured into them over the last many years was not invested by people thinking they would never make a profit. The technical report for Florida Canyon says that they should have an AISC of aprox. $1050 with 70 000 ounces per year of production. So if they can get anywhere near that even up to around $1200 which is not that far under the current $1300 plus the AISC is at today and get production up to near the 70 000 ounce range they will make a good bit of money at $1500 gold.
This is what makes good opportunities in the stock market. Mispriced stocks. Most are thinking that this stock is worthless based on the performance of the last few years. An investor has to look beyond what the market thinks and see what the numbers are telling you. I personally believe that there is a relatively good chance that they will turn things around next year although i could easily be wrong.
Now if this stock was at $3 or $4 with a $250 to $300 million market cap i would not be interested as if they got it right it probably wouldnt go up much and if things did not work out if could drop way down like it did a couple of years ago. But at 75 cents and possibly lower during the upcoming tax loss season it is quite interesting to me.