RE:RE:RE:RE:RE:RE:JV economicsWylee, the memories do not work like they used to. I remember being in back then, and I bailed because of the JV, remember reading the agreement written in the worst possible combination of legalese and accountant gymnaztics i have ever seen. They redid the agreement later on and even Russ commented he couldnt understand it. The share price did go up after the JV, and did not tank because of thr JV. If TKO gets an excellent deal with a florence JV, it should affect the share price, just as a sweet deal for the JV partner will reflect. Sclarda thought 92M usd for 10% would be pie in the sky, where i think that would be digging through the bottom of the barrel. KW
WyleeCoyote wrote: Yeah, NF and CM get chippy for reasons I really don't understand.
I've only been a shareholder for pushing 30 years, so I apologize if I can't recall every fact with precision, but I've come pretty close by just going on memory.
This all started with the premise that selling 25% of Gibralter added value to the share price on the theory that the JV partner paid more for the 25% than the existing share price. That is a true point, and I can see why management wants to frame it that way. It may be 100% true. However, it is my belief, having been there at the time with many other longtime shareholders that the bump in value was because of the sentences I pointed out explaining that the funds were to be used to build Prosperity. It was on one hand very exciting that the permit was forthcoming, but also upsetting that we "sold out" for such a low price given the value that was coming from the permit. And the share price kept climbing, way ABOVE what Sojitz paid for their interest. So I don't really see how the Sojitz deal set the share price. In my view, it was the PRs.
Clearly, the stated purpose of the Sojitz deal was to fund Prosperity. The company said it TWICE in PRs. Once the permit was denied, those funds were used to upgrade Gibralter. That made perfectly good sense at the time. But it's rewriting history to say that the funds were raised for the upgrade when they clearly weren't.
Regardless of all of that, it doesn't matter today. That's very old news. I've been holding close to 300k shares for many, many years. I've made and lost fortunes in TGB on paper, as you can figure. The last thing I want to do is talk down my book. I just find it irritating to see posts about how brilliant it was to sell 25% of Gibralter to raise money for its expansion, and why it was such a great move that resulted in increasing the share price. In my personal experience, it was irresponsible to release 2 PRs explaining that selling 25% of Gibralter was required for the building of Prosperity knowing full well that everyone who read those PRs took it to mean that management had a very high degree of confidence that the permit was forthcoming.
So I'd done whining and moaning for the day. We had a very solid gain today, which I believe is a sign of better things to come. One of these days, my ship is going to come in . . . .