Too cheap to ignore? Hypothetically speaking. If you had 18 Millions dollars available and you could buy all outstanding shares at 4 cents each would you do it?
I know I would.
I wonder how many other investors would be willing to buy at 4 cents if they had the chance?
How many shareholders would be willing to sell at 4 cents?
Knowing that the current cash position alone is worth 4 cents a share, they would give up all the lands, gold reserve, gold resource, permits and licenses for free. Buyers would get all of those for free.
I think it's very unlikely.
So if it can't go as low as 4 cents, how low could it go? Would shareholders be willing to sell at 5 cents?
That's 4 cents for the cash position, 1 cent for all the lands/gold or a 4.5 million dollars value.
I think this is unlikely but possible.
How many investors would be willing to pay 5 cents knowing that it's most likely the bottom?
Probably more buyers than sellers, so if it does go to 5 cents this wouldn't be for very long.
Only a few lucky ba$tards would have the chance to grab some of those before a rebound.
So how should we determine at what price to buy?
Let's say I want to own between 500 000 and 1 000 000 shares.
Would it make sense to set up these buy orders?
0.055 500,000 shares
0.05 500,000 shares
And if for some reasons 4 cents become available, I would buy at least another 1 000 000 shares.
3 cents/share would get you free cash on top of free gold. At this level all bets are off.