About 6 weeks ago, I noticed an MOA News Release on Kitko (Take Note IR!!) pertaining to the successful trenching results on thier Little River project. I was intrigued as I like grassroots discoveries, especially when they encountered those excellent gold and Antimony grades.
I then conducted some DD and was again impressed on 2 fronts:
-Thier other project, Valentine Lake, has a gold resource of 443,000 ounces. Even at a paltry $40.00 per oz insitu valuation, this project alone represents more than MOA's entire market cap. Granted, the project might not be large enough to justify development, but if they find more - look out.
-I noticed in thier most recent MD&A that the difference in shares OS (29 million)and shares OS fully diluted after options and warrants (32 million os) was minimal. I notice all too often that a company might have 30 million shares issued and OS, but on a fuly diluted basis they are really a 50 million share pig. This is due to managment being loaded up on cheap options and full warrants being issued with every financing - especially the cheap ones. This is not the case with this deal as it's obvious management will only dilute when it makes sense, and not for the purpose of bilking the treasury. I like companies that are very tight with the issuance of shares, even to insiders and employees - this is a sign that they are serious about building shareholder value. This is quite different than most players who issue paper like confetti with obvious thoughts that - we can always roll it back and start over.
I also like the fact that management and instituitional players own about half of this deal, possibly more with the latest round being all institutional. When you issue shares via brokerage firms, espcecially those in Vancouver, you end up simply renting temporary shareholders since once the stock is up over 20%, you end up having to chew through all the paper you just issued, not to mention the exuberant finders fees, full warrant attachements, broker warrants and the fact that these firms usually insist on financing you at a significant discount to market. Good compnaies do not sell their souls in order to raise money. And good companies know how to avoid the "Howe Street Wh0res".
My biggest concern re this deal is that they don't seem to have a credible IR strategy other than some overpaid corporate communications guy. The volume is way too low on this deal and I do not want overpromotion, pump & dump,.etc., but we need more people to be aware of this deal. Especially if this phase 1 drill program hits - this way the company can raise money at much higher levels which is really the name of the game.
That said, I noticed the trenching results on Kitco about 6 weeks ago and at that time I started picking away in the market. It took me about 3 weeks to accumulate 100,000 shares as this deal is highly illiquid. I did'nt want to chase the market, mainly becuase there was always very little available on the offer. I just quietly placed bids in the .24 - .26 range and eventually obtained a decent, albeit modest position. It seemed that I was only competing with one other buyer at the time.
Good Luck to all longs and thanks for keeping this board solid.
JANDD