RE:RE:up we go?Valjan- couple: of investment 101 points;
1. CEO and CFO manage companies to benefit themselves- any crumbs left over go to shareholders;
2. if money is to be made, then go back to rule 1
So what of future financings- think of this possible scenario
1. they use the $30 million to get improvements in place, get their costs down and shares begin to move into the mid 20s to 30s;
2. consolidation of 10 old for 1 new.
3. stock begins to trade at say $3 and slowly work itself to the mid $2 range
4. Now with 100 million shares and Glencore still controlling ~26%, then do another bought deal but this time for 100 million shares and attached warrants to net about $250 or so million dollars
5. use that to pay down debt and fund operating requirements (ie clean up the balance sheet and put some lipstick on the xxI;
6. sell out and move on to another stock.
At the end of the day management make boneheaded decisions (and thats what has brought TV down into the gutter) and shareholders lose- plain and simple.
Investing in these semi junk companies with questionable / marginal companies is worse then playing the lotteries as with lotteries you know that there will be many, many more losers than winners and with these companies there is always the hope that shareholders will do okay, but the common thread is management and the board get to fill their boots with cheap stocks and make off like bandits but in plain view of everyone. thats called "doing business" and having business acumen- that is taking our money and making it theirs.