Don't try to catch a falling knifeI look at SGNL. I compare it to other similar companies. SGNL looks cheap. But they need money soon. If they borrow, it will be at crazy rates. If they do a pp...well the price has to be lower than the market price, unless it's flow through. Kevin said that in his webcast Feb 6 or so that there has to be an incentive for a pp.
This is being manipulated like crazy with less than $100 000 a week in trading. Way less some weeks. For someone to participate in a placement at .10. Which means the price will likely go lower than that.
Plan on investing 5 million... just dump a few hundred thousand shares a week. your loss is not that big if you previously invested in the flow through financings. even in you didn't. lost 10 cents a share so a few tens of thousands a week.
But when you buy into the pp.... say 50 million shares plus warrants at .10. You have spent or lost $30 000 , but you are getting an extra 25 million shares plus warrants. 50 million instead of 25 million.(had the price been .20).
I'd prefer some financing and try to build the reserves more. Because right now in a sale, there is not much left for shareholders.
This could all change tomorrow if they announce good results from outside of pit 1 and pit 2. It could easily double in a day.
This is not the only junior mining company struggling. Survival is important.
They need money now is my guess. Good luck.