Post by
yang68 on Dec 12, 2009 6:33pm
My take on PMI !!??
IMO - PM will eventually become a very important asset to the future success of MDG. Right now they have the benefit of watching and waiting! Assuming the Phase I results are in a range of good to excellent the company will need instant support from a management standpoint ! PM can provide such support. I would think that a game plan has already been worked out between parties as to how to handle the growth spurt that is ahead for MDG. Do I think PMI will exercise their rights to maintain their proportionate ownership by the Monday deadline? No, and for 2 reasons. First, why dilute a stock further on the eve of posting important results? If PMI were to buy in it would certainly be a guarantee that Phase I was a big success but don't expect them to do so. Secondly, PM still controls most or all of 45 million warrants from their original buy-in. These warrants can now be exercised at $.405 until Oct.2010. Do the math- do you pay $.72 per share and $.50 for 1/2 warrant (when exercised) = $1.22 for 1 1/2 shares or for ease of comparison = $2.44 for 3 shares or do you wait and gradually exercise your warrants(controlling dilution) = $1.23 for 3 shares?? I might be off base w/ my math but if all options, warrants, etc. were exercised PM would still hold about 50% of the ownership w/o opting into this current financing! PM and MDG understand the effect of dilution on SP! MDG has enough $$$ to carry the co. through 2010. IMO this is a company to be with for the long run if results are as expected. This is a nervous market which should prove for an interesting week ahead ! Up or down - volume will tell the tale! I also expect a degree of "Buy the rumor, sell the news" even with the best results since there are always those who play for the quick gain. Just my opinion. GLTA
Your comments and corrections welcomed!
Comment by
transformer2 on Dec 12, 2009 7:52pm
My opinion, BUY RUMOR AND BUY NEWS because 3 deal ( tabuk , Genopole and Ajanta ) after the result phase 1 and possibly 5 new big deal .