Also, if they do a PP then it is done on the primary market and not the secondary. As we know the primary market is a sale of shares from the company to a stake holder. We would have a Cash Debit and a Credit in the equity section basically resulting in cash in the account. Had the investors done this on the secondary market, than the money would have simply transferred to another holder. In this case we needed cash and people were willing to give it at a discount to MV.
I know many have a negative feeling about these private placements/flow through but I think it is important to note that the people placing the money are people with some knowledge and that have a lot of money. If they are willing to dilute the stock and take a position then maybe there is more positive than negative to the picture. Much of the money from the Initial PP can only be accessed later due to some rules that were put in place.I would much rather see a PP than have a low cash balance.....risk management. I consider days like today excellent buying opp's for current holders and new holders for that matter.
With that being said I know people are pretty “stoked” to see what the company has to release on the 15th but I think it will simply be a time for the company to answer some question and to see some improved financial statements.Much of the money from the past was used to clear the balance sheet to make some of those ratios look a little better (it worked).The real figures that will send us rocketing in one direction or another are the Q1 results in 2011 when we are suppose to be Cash Flow Positive. If gold prices stay over $1300 (which I def think they will) we should be able to pull it off no problem from what I see from the current financials. I took the financials put some finance skills to work and it looks like if the production number are accurate we should be well on our way.Also, I highly doubt if there will be any announcement of the new CEO in the coming week.Many people do not understand but this is a long process.Just think, each person that is considered must meet board members for interviews which are literally spread across the map including Russia of course.I am not a fan of waiting on a new CEO but I would rather wait than to have a “half Decent” CEO at the helm.Once we find a CEO with a great track record I think he or she will be able to accelerate this company in the right direction.
At this point in the game all we can do is wait and see what happens.It may be frustrating for some to see share price go sideways but in trading school they always said “longer the consolidation the bigger the pop!” The longer we stay at these levels the more support we have as people that got in early sell and the new Purchase price for new investors becomes current MV.
I guess I kind of wrote a book and made many points (some of which that may not be clear to all) I think people need to sit back and relax ....we have a great investment here and from what I see we have little firm specific risk.I think the private placements that we have seen in the past prove this.We have Russian millionaires backing us up because they know where the price of gold is going and they want to try and coin it on this junior.
Once again Cheers and if there are any comment or concerns please post them.
Have a good one!
3 comments:
Stormy,,,
thanks for sharing your thoughts. You know hwere i stand regarding confidence in this management. I have pretty much given up speaking to Peter Ball. He speaks with sincerity but does not have a grasp on the underlying CMM picture. Hulley has put a muzzle on everyone and that speaks volumes to me. Primary market eventually becomes the secondary market(after the gestation period) and of course it becomes a dilutive process. Yes it is nice to see that some large players are willing to play at discounts to the real market value. We all know that the market is manipulated to the "strike price" of the PP to make it appear that shareholders are not being railroaded. But in actual fact retailers are being railroaded. The SP is being suppressed by the large players since management is too busy attempting to make the mining operation profitable at all costs. Hulley is cowtailing to these bigger players since he has no options. PK at least would take her financings off shore and not cowtail the whims of the whitecollar criminals here in NA. It is a crying shame the way our society is being run by the MONEY TRUST. Heaven help us all.
Good post and way to keep things in perspective.
I've seen everything that is going on here at Century many times before . . .First Majestic Silver had a similar situation in 2008 when they were at 2.35 and the shares took a dump from the dilution down to 1.40! They needed a little extra cash to complete ramping up a new mine that would more than triple their total output. (Sound familiar?)
Since then, after ramping up their new mine and increasing production, they've shot up to 10 bucks for a 700% gain from that bottom.
There may actually come a time where we become a really boring, fairly valued mid-tier miner that moves along with all the others and that's when it will have really paid off to have been here and stayed from these rough times.
Cheers,
RE
R.E.
Yeah, I remember First Majestic. I owned several thousand shares and sold them at $5 (up from 1.70)....to buy more Century. Guess that was a mistake! Doh!
Oh well, at least I still have my 3000 FM silver strike coins :-) Thats one thing I liked about FM. They gave shareholders opportunity to buy silver oz. at spot direct from the mine.
Wouldn't it be nice if CMM gave each shareholder a freshly minted gold ounce available for cost ($600/oz?) for all the long-suffering we been through. It would be a show of good faith.
I'd say anyone with more than 10,000 shares qualifies. How many oz would that be? Finsky = 1 +++++????
Weary Canuck
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