RE:WHY SHARE PRICE SO STAGNANT THAN IF.....Share prices seem to be walked down quite often in advance of a large financing -- so that the pricing of same does not appear totally out of whack. Shareholders are more willing to accept without complaint a flow-thru share price of $11.50 when the stock is trading at $10 than if the stock was trading at $13.
At $13 no investor would be willing to invest $57M into an "exploration" stock as the risk is entirely on their shoulders. At $8.50 share (after the tax benefit was sold off elsewhere) it makes a reasonable acquisition price -- particularly when the last offering was only a few months ago in the $5 range.
So the SP gets temporarily whacked down - the financing occurs -- the shareholders are upset but of the mandatory quiet period (but not enough to be banging on the door of management trying to toss them out) -- the company gets funded for another year of exploration AND then mysteriously sometimes the share price gets walked back up after all the paperwork is completed - t's crossed and i's dotted.
We are close to the last point - will it happen? Guess it depends on whether we get one of those 3,000 gram-meter assays that ES kindly dropped in his comments.
That would probably vault NFG back up to the $13.50-15 range - resets the pins at where the whole process started and another year begins.
Investing in the junior mining industry is not for the "faint of heart" and I don't advise doing so unless you are willing to lose 100%. You need that mindset to sleep at night........
PS: With $1M invested into a junior exploration play! I would assume that you've done this before and already understand the above.....??