Share Price does not represent Omai ValueAt our current share price Omai continues to be the stomping grounds for short term trading. The current share price does not represent what is in the ground. This type of trading is disastrous for getting a reasonable representative valuation for Omai. Yes day traders love to buy shares at .04 and sell for .05 giving them a hefty 25% return which has been happening for the last 6 months. Who would not want to continue making these types of returns, but it is not healthy for overall share prices. This will just lead to a share consolidation which will hurt existing shareholders. As a long term shareholder we lose and this holds the stock price back and we end up giving shares away for pennies when we do our next financing. We have a very substantial resource at Omai with excellent prospects but our share price makes us look like an early stage explorer.
From what I understand the company will probably monitor the trading and share price to determine the next course of action. And just for clarification, the proposed consolidation allow directors to do UP TO 1:9. So from what I can see, if the stock price starts to reflect a close valuation of what Omai has in the ground there might not need to be a consolidation. If the share price goes up the day traders will not see the same returns and maybe go else where to make some easy returns.
Partly the strengthening gold market, many analysts and investors seeing our string of successful Wenot drill holes has brought considerable incoming attention over the last two weeks. Share volume has increase dramatically. Let’s hope that stimulates additional buying and increases share prices which will undoubtly reduce the chance of a major consolidation.