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CEO.CA members discuss high-risk penny stocks which can lose their entire value. Only risk what you can afford to lose.
@lukejacksonI'd agree with @theDailyGold - not a bullish week for gold even though it pushed through 1250. Frankly gold is behaving strangely at the moment. There seems to be a major shift underway that I nor the markets fully understand.
@FundamentalAnalysis@TheDailyGold Agree with that....but most are around the 0.45 region. I think most of us have topped up at that price and below. so less of a concern. Also the increase in shares would lead to an increase in cash and thus a fundamental increase in value of the company (and which should hopefully be used for value accretive purposes and not wasted) But yes the market cap is effectively 50% higher then what it says in a way. Agree with @jayfire point.
@FundamentalAnalysis@TheDailyGold Depends on how you look at it but get your point. Speaking generally.. Upside gets taken away from more shares issued, thus proportion of company owned decreases. But same time if you buy something below placement price I also think of it as the lower valuation boundary increasing... on the assumption the cash proceeds are not wasted. So say 1million shares at $1 share for $1million valuation and no cash in the bank with an optionality asset and you buy at $1/share, market then rises and then a placement or warrant proceeds come in at $2 a share for $500k proceeds. We have 1.25million shares at an original i.e(market cap when you bought + new cash) for $1.5m which divided by 1.25million shares = $1.2/share at that point in time. Now naturally with mining the cash proceeds might get blown so technically you could become worse off but if the $500k raised can be used in an accretive manner it could add some upside to make up for part/all/or more then the dilution of upside faced. On the assumption cash gets blown it would be (1.5million - 500k proceeds) / 1.25million shares = $0.8. Unusual way of thinking about it....but if sandspring can use any proceeds to drill in an accretive manner it may be less dilutive then it appears.
@TheDailyGold@anonymous There is no H&SH in $NXE but it certainly has risk to go lower. Its a pet peeve of mine but H&SH patterns are actually very rare yet you will see people assume everything that looks like a H&SH is one.
@BSMy bad, thought he was quite bearish (in his public comments) late 2015, and didn't expect the market to turn around so violently in early 2016. Though he did position himself in case it would happen, but was expecting the bear market to last longer, if I'm not mistaken. But maybe the problem is my memory. What do you expect with the upcoming rate hike, @TheDailyGold ?
TheDailyGold@chiel No system is perfect but I think the SKI system is worth much more than the $25 monthly fee.
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@Goldfinger@TheDailyGold they exist in an alternate universe, yet they continue to thrive because there is zero accountability. Running a fund forces them to be accountable, that's why they don't anymore.
@FundamentalAnalysisAgree with @TheDailyGold here. Marin gets in early with PP and is chummy with the people leading the companies he is involved with. I.e Amir Adnani and him go back many years since high school I believe, hence he is able to get those favourable terms. For the most part the others are not good investors/speculators, they've made most their dosh from selling information or management fees from funds they have run. Most couldn't become a true full time fund manager using only their own money as they don't have the skill to do so.
@Excelsior@TheDailyGold@Goldfinger@FundamentalAnalysis@lukejackson - Great (and tragically funny) comments all around guys regarding the egomaniac blowhards that are given far too much credit and influence in the resource sector. However, I'll concede that in their own way each has been informative and/or entertaining at different points in the resource investing journey for many people. #Infotainment
@Brendan@TheDailyGold Rickards is especially unappealing. I have no idea what he sells - maybe vault services or something. I've read a bunch of promotions that go something like: "my CIA friend (and this is a top level insider, not a rank and file spy) says that April 27 is the date you have to abandon the dollar based bank accounts, gold is absolutely going to be above 1400 by then"
@FundamentalAnalysis@TheDailyGold Thanks, Apart from that....is there anything else that can affect it in your opinion at least over a medium term horizon. Or is it more a case of something affecting interest rates and inflation and thus affecting gold price. Yup guess that would make sense...just answered own question.
@FundamentalAnalysis@TheDailyGold Yes you might be correct, increasing rates (politically driven to some extent), and inflation most likely being lower then expected will keep the lid on gold next few months and arguably I think for most of this year.