Post by
JohnEStromJr on Jul 21, 2010 12:39pm
Up and Down
It's hard to believe in this company or management any longer. The nickel stocks at the LME are down almost 30% from their highs of over 166,000 metric tonnes to about 118,500, the price is up modestly to around $8.75/lb. True, it fluctuates but it's found it's range. Below that few are going to mine for nickel and that includes most laterite ore. That means the price of nickel should slowly increase so long as there isn't a meltdown in China. Even if there was they can just put their 1.3 billion slaves to work for next to nothing since it is a Communist state.
In the mean time Liberty Mines is running at full production - or at least we've been led to believe that it is - and they should, at the very least, be making money even if they're not paying down the debt owed our esteemed owner. Management has carefully laid out a plan that, if everything goes perfectly, we could possibly pay off our loan next year. Well, we'd better but I'm suspicious that management is telling us what we want to hear. Why would I say that? We've just matched our 52 week low and that includes the period when we were not trading. Impressive.
As I've feared all along and others as well, there is no reason Jilin Jien will have any interest in seeing the share price increase. Why should they? The OWN Liberty Mines and, by extension, every employee works for them. They have a vested interest in seeing this company stay afloat but not gain in value so that they can pick the few remaining shares off at deep discount prices. My guess is that they can't go private now or they would likely face a lawsuit over just how they came to be our owners without a vote of the shareholders and engineered a deal that gives them total control yet we get to pay off the money borrowed by management before the house of cards collapsed. So, if I'm correct, after a period of time we will slowly fall by the wayside and at some point we will be informed that management has taken a vote to go private. They don't need to consult us anymore since, at the very least, they own outright 51% and another amount of shares which they can elect to buy - or not - boosting their ownership to around 76% or more. At 80% they can go private. In the mean time we get to pay them a large amount of interest and wait to be forced to sell. This is all conjecture but so far everything I've seen is spot on and I see no chance of this stock increasing in value. Once again, "they" get the nickel and we get the shaft.
If any disagree please tell us why this stock should go up and why Jilin Jien won't pull the rug out from under us.
Comment by
gsgold on Jul 21, 2010 12:52pm
Welcome to foreign investment, and you thought it was good. I used to own this but got out after the halt & buyout.The owners only want the nickle, share price is of no concern.
Comment by
gsgold on Jul 21, 2010 3:49pm
Well believe what you want but I think the market is saying something different. By the way this company used to do exploration when their share price was .80. Thats when investors could see future value, right now not looking to good.