Mako Mining Corp V.MKO

10:1 SPLIT

[Mako2022]

Reverse split management circular with POTENTIAL UPLIST later this year in the cards.
Akibas tweet.

[Method]

Some people won't buy penny stocks so this opens us up to those buyers. I think very constructive although we'll have to get through the sellers that think consolidation is always a bad thing first. I doubt there are many of them.

[stkstroker]

I have been in the business for over 40 years and seen and experienced numerous consolidations.  Most don't go well.  I support MKO's decision and will continue to hold my stock providing they carry out the following promised goals.  Pay off the existing debt. Increase production to 1000 TPD. Get profitable. Continue to buy back shares and formulate a

[barrywhit]

stkstroker, Well said...any 10:1 split before the points you stated would be madness...

[Method]

  I have only been in the investment business for 20-25 years but most of the consolidations I have been involved in the stock went materially higher. What they all had in common was FCF without the need to raise more equity to fund operations. That's the case with Mko. if anyone thinks it's madness and wants to sell, they were probably going to sell soon anyway because it's

[stkstroker]

So what went wrong with Sailfish?  I believe it was consolidated to 71 million shares outstanding.  They even pay a dividend, and yet the stock struggles to stay above $1.00.  Share volume is minimal. Tell me why MKO's situation be any different?  Granted, I would love to see a MKO dividend.  

[Method]

It's not any different I guess. Sailfish has a much higher valuation than Mako despite all of its cash flow being derived from Mako. I guess it worked.

[AkibaLeisman]

Sailfish never consolidated.  Marlin shareholders got 1 share for every 5 they owned.  Sort of the same thing, but not.  the big issue with people's interpretation of consolidations is that there is SO MUCH survivorship bias.  RS's happen when share prices are notionally low (true) Share prices are generally notionally low when companies aren't doing well

[stkstroker]

Thanks Akiba.  Sorry if I sound a bit discouraged.  I still maintain we need to move forward with paying off the debt and increasing production to 1000 tpd capacity.  New shareholders will only come in if they can make money off of share appreciation and potential dividends. That's what will move the share price higher.   

[Method]

People will buy the stock if they think others will buy the stock. The consolidation should make the stock available to a whole new group of investors, if they buy the stock will go higher. Some will wait for it to happen first but seems like bether risk/reward to buy it cheaper.   A dividend will also bring in new investors as some will only buy stocks with yield.