RE:RE:RE:RE:FTAA of Didipio is there while Haile is a desaster Why the market doesn't honor the Didipio FTAA?
- the share value has been diluted by a not necessary capital increase about 10 per cent, which disawovs the management. 10 additional per cent of shares shall be traded at the Philippino Stock Exchange. Where these stocks will come from? Another capital increase of 10 per cent instead of a 10 per cent share buyback? This has been proclaimed by the IR board member Pazuki. The management is at risc to prove itsself as liars not to perform the share buyback now, immediately, or as idiots to a much higher share price later.
- the head manager of Haile Whittacker has been fired, things must be very bad to draw this conclusion. OGC won and lost a mine at the same time. This does not support any impression that OGC is able to acquire qualified people.
- there are a half dozen permits for WKP, Haile ... in the pipeline, the Didipio issue stood not alone. It's a long row of favorable developments which have to be just yet fulfilled, too much "ifs, then ..." than investors could like.
- the capex of the company is far too high and out of control. The report about Haile prepares for this in the earnings report at the end of the month.
- the merger with Romarco turns out as a full flop. The perhaps better decisions of the former management, aquisition of Waihi, WKP ... are in a pending situation and at the moment no more than hope and promises, for which the company has lost credibility.
- all observers included me expected the share price can only explode and skyrocket after the renewal of the Didipio FTAA. Too simple to work out.