I just saw this. I have no idea who this John Kaiser guy is but his basic pt on why this stock is not going anywhere soon makes sense. Kaiser says sell Geologix Explorations
2015-02-04 20:56 ET - In the News
John Kaiser, writing in a Jan. 14, 2015, Spec Value Hunter Comment, says he is selling Geologix Explorations Inc. at four cents, and adding the stock to his bottom-fish watch list. He said buy four times between April 29, 2005, and June 29, 2010, at prices ranging from 21 cents to $1.99. On Jan. 1, 2012, he said sell at 25 cents. Assuming an investment of $1,000 for each of the four buys, selling the $4,000 investment at 25 cents (for a tax loss) would have resulted in a loss of $917. He said buy the stock back immediately at 25 cents, and buy again on March 26, 2013, at 15 cents. Assuming an investment of $1,000 for each of those two buys, selling the $2,000 position at four cents would result in a loss of $1,573. Geologix has a prefeasibility study for its Tepal gold project in Mexico, but it used a base-case gold price of $1,390 an ounce. This is rather far from gold's current price, and Mr. Kaiser says it no longer justifies a buy recommendation. The company does have, he says, title to Tepal, a significant asset, and its management has shut down operations so that annual holding costs are around $75,000. The editor says Geologix has $1.4-million in working capital, which could allow it to hibernate until 2016 if necessary; as noted, he has added the stock to his bottom-fish watch list.