RE:Are Atlas Salt and Vulcan Minerals On A Brink Of Collapse?
Seriously?
Explain to me how a non-operating, exploratory company will go into financial distress (i) 3 weeks after doing a $10 million private placement with investment funds and (ii) with approx. $18 million of cash in the bank and a nominal cash burn rate?
The only people losing or not making $ right now are the people trading this down because they have no idea what they are dealing with. The share price could be at $3 now vs $1.40 and the company's path would remain unchanged. When the share price was $2.20 a few weeks ago there was no financial distress then. Pretty sure that there are no private placements envisioned and even the last one was an unanticipated one and the company took it when approached for strategic reasons. Even if this doesn't get sold (unlikely) and Atlas develops it, that would mean debt financing predominantly. A minority of investors that go wobbly does not set the value of this play. The majority of shares that are closely held by insiders and related companies are not being traded. Insiders are not exercising options and selling on the way down.
The company's IR have already said that are surprised by the post-PEA price action when reached out to by one of the posters on CEO. What is the company supposed to say, nothing has changed? If there was something happening within the company that was driving the share price down they would be out there. Nothing has changed with the company or the project. On top of that you have a conservative, base case PEA with an approx. $5/share after-tax valuation on which Management has already expressed optimism of more upside when expanding the assumptions of the PEA afforded by the attributes of the deposit and the target market (domestic shortfall supplied by imports).
It's ok to say that the low share price sucks. But to post publicly that you think a company is going boobs up, well, that's just wrong.