RE:RE:mutual fund institutional ownership update Good post, Kewl,
That rather puts the ducks in a row...don't you think?
el d
Kewl002 wrote: Imo, this is not a "Normal" instituation type investment in the junior mining/explorer category and I expect ony a handful of really smart value-oriented investment houses to buy NFG.
Most junior mining companies are heavily dependant upon instituational investment to raise the capital necessary to explore. This also makes them 100% vulnerable to those same investment companies saying "OK we've made enough $$$ -- now sell your company so we can cash out".
This CANNOT happen with NFG because ownership is concentrated in the hands of Kettle and Sprott, Novo and Mgmt and thus there is only a 30% free float available for ALL of retail and institutions.
Any institution that invests in NFG is doing so on the basis of perceived value and not because they will be able to control the outcome -- they expect the share price to rise because of the details regarding management, property and drill bit. They know in advance that they cannot force their will upon other shareholders.
This is an EXTREMELY powerful vote of support by these isame nstituations in every aspect of NFG. They would not be making these $multi-million investments if they had any doubt whatsoever in they were investing in the best outcome. Their jobs depend upon it their companies being well rewarded over time.
The attached post says that institutions own 7.5% of NFG --> this is equivalent to 25% of the available free float. The ONLY people that they can buy more shares from is you -- because it's the retail shareholder that owns the remaining 75% of the free float. A measly 30-35M shares remain IF ALL of retail sold out -- but they won't be getting mine.
So as the SP floats up and down and makes us wonder what's going on behind the scenes - remember that the only way any of these instituations can position for the potential motherload is for you to sell them your shares. This will take on an even greater prominance if/when we FINALLY get the drill bit issue resolved and assays begin to flow again.
No matter how frustrated we sidechair quarterbacks are with the lack of assays, it's our management team that actually NEEDs this information to find that motherload that we are all awaiting.
Imagine their level of frustration at not being able to tell us WHY they have 14 drills running concurrently and/or what they have already found for which they don't have assay proof available to confirm publicly.