GREY:EMYSF - Post by User
Post by
upmarketson Oct 02, 2004 8:30pm
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Post# 7998461
no pressing need for a rollback
no pressing need for a rollbackReasons to rollback a junior:
1 brains blown out , no money , no property results
2 no control block
3 too many shares to be able to raise money without severe dilution
4 dilution makes it impossible to trade stock up without a quality advance project or to raise the money to do so
5 need a lot of cash for a project and no debt conversion in wings
6 ie is a wounded dog-
You roll back to establish a fresh company to promote from nothing again
EZM doesn't fit above scenerio
-- Now has a quality mine taken over
- a ton of shares were issued, converted or ready to convert, already, in 10 to 25 to 45 to 60 cents range
- cash was raised for takeover already and loans established
- cash flow from sales to be strong to pay off loan in 2 to 3 years
- and or cash flow can give funds or support loan to develop the Zinc property
- I think they can raise a good sum from the Denver.. Resource ... group from their warrants?
They might feel a rollback would help with next loan but I don't think is necessary as they may not need that much more outside money
Soapbox time
-- My pet peeve -( IMO ) :
I believe historically that Reverse Split is an American term
Americans seem to struggle with big clear words/concepts like
CONSOLIDATE or ROLLBACK as we use in Canada (and of course we should support ) - Queen's English or Bush's Drawl ?
Reverse Split to me has a false positive , obfuscating spin which America loves
Why alter a positive word like Split when Management has failed and the investor is getting the Shaft? ( a well-known junior mining term )
Ever compare an SEC to a Sedar legal filing ?
The juniors that are moving into or close to production would seem to be good to place into portfolios ( eg TKO )
Good Investing
Upmarkets