SGNL Investor Alert:To fellow SGNL Bullboarders and Investors: I am assuming that most of us who participate on this information exchange are long-term shareholders. As such, I am simply offering a little "food for thought" the first of which concerns the sale of the Point Rousse assets to Maritime. I happen to believe that we sold too low. The mill/refinery complex alone has to be worth more than the few dollars we took for the entire project area. I could easily list a page of reasons...but enough said.
Secondly, it is worth emphasizing that the issued and outstanding share capital of Signal has now swelled to 219M,593,000 shares, according to the record and I am currently experiencing a great deal of dysphoria about this situation. Why....you may ask? The answer lies in the history of the Company in this regard, a history which has been marked by periods of irresponsibility with our shares -- a tendency to issue them as though they were "play-money" (monopoly). The Company's answer to this reckless dilution has always been to turn to the "consolidate" way out. This has resulted in the wiping out of our leverage and the loss of much of our individual real capital. To date, there have been two such consolidations, the last of which I strongly opposed, but nevertheless, it passed the shareholder vote in 2017 when 4 old shares were exchanged for 1 new, when the stock price of Anaconda was .10cents.
Previous to this successful consolidation, there was a failed bid to consolidate. It failed because shareholders "saw the light" and uniformally voted it down after a fervent campaign against...it simply did not pass the "smell test". I also strongly opposed this attempt which was presented to shareholders on the basis of a much higher ratio than the subsequent consolidation in 2017. Shareholders here had the good sense to say no! If it happens again, will shareholders come to a like epiphany?
When I last communicated with Mr. Dufour, I expressed my dislike for and opposition to any future such consolidations, especially when the Company's share price is still only at the "penny-stock" level. One reason is that invariably, the post-consolidation share price slides back to its pre-consolidation valuation and this is borne out over and over again if you examine the history of such tactics...they rarely achieve what we are told they will do.
A future share consolidation may or may not be proposed again. If it is, I am hoping that current long-term shareholders of Signal, also experience that aforementioned "epiphany" and vote down such a proposal in order to protect our interests rather than to reward again, the careless, haphazard issuance of more Company shares which in reality, belong to us, the common shareholders. Company shares are only "entrusted" to our Management who are expected and actually mandated to use them responsibly, sparingly, and only when in the very best interests of the shareholders. So, keep this in mind should another consolidation proposal be tabled. Company shares are not "monopoly-money". In point of fact, our share capital represents all of our vested, monetary interests in Signal Gold. Please remind Management of this!
Patience is a virtue (and rewarding)! Keep this in mind also.