Timing of Offering Makes No Sense UnlessIn recent conversations with JJ, he had made it clear that Excelsior had enough money on hand for quite a while. However, management never wanted cash levels to recede to levels that might be worrisome and would not wait for the last minute. In addition, management wanted to limit dilution (for obvious reasons) and, therefore, wanted the stock to rise before a public offering. The timing of the PP makes little sense if you assume the CRUX article had no validity. It has been in all shareholder's best interest to have a higher stock price before a PP. Why would the company not immediately and publicly refute the Crux story? How about the threat of litigation re the article? How about some insider buying after telling their side of the story? How about anything? Perhaps, management took advantage of the one day rise in the shares knowing that they had nothing positive to say to move the stock higher and get a higher PP price. I held two copper mining stocks. Unfortunately, the larger position was Excelsior, the smaller Copper Mountain Resources. I have, in under a year, a triple on Copper Mountain. Over the past week, or so, I sold my entire Excelsior postion of well over a million shares. I made a modest overall profit on shares I have held for many years. Trading volume had increased and made it slightly easier to clear out the position, although I had to take some haircuts in my sell orders. In my last conversation with JJ, a couple of weeks ago, without him saying it, I got the feeling that all was not progressing smoothly re the improvements in the production process. Of course, maybe I was reading something into this this that was not there. Then came the Crux article. Then came a posters note that one half of the wells, in the one third of the wells operating, were not functioning properly. Then came the public offering, at a time when it did not seem the most opportune for shareholders.
Anyhow, I have made many mistakes in my investment life. This is probably another one, however, things just do not add up for me. Hope Excelsior makes all of you a potful of money. I have put some of my proceeds into Arizona Metals Corp and I hope it makes me a potful of money. Time will tell if I was right or not in dumping EXMGF. Most important, best of health to everyone.