>So, far the deal is upside down and appears to be heading for >another round of severe dilution.
I suggest that shorting (or going long) a stock without investigating the stock is upside down.
Another round of severe dilution? Manhattan's financing over the years has been extremely well done. They have had timely forward sales on their Moris production, and they got some financings done at higher levels before the big slide in juniors. That kept them going for two years, and allowed them to stake and option surrounding property. In hindsight they probably would have liked to be able to do the last round higher, but in this climate I don't fault them for placing it when they could. The FM group has it coming anyway.
I'm not sure what promotion to which you refer. Maybe on your side of the 405, but not mine. Manhattan has always been very quiet and low key, although they have had dog and pony shows to investor groups, like any company. Their funding is mainly through a group at First Marathon that have been very supportive of the stock. They hold the warrants that are at $4.50 and $6.00 that I think may affect this run, but they also were part of the financings at a higher level. The first runup in Manhattan was due to speculation on some gold properties, back when gold in the ground was worth something.
I do agree with you that some of the signals of a typical short are in play. But there are results pending that have the potential to change the fundamentals. First Marathon has been a net seller, as usual since most of the stock through that house was bought via financings, but they aren't dumping by any means.
If you call Manhattan and speak to Mike Mallard ("ma-LARD", not the duck) he can give you an explanation of why Manhattan ended up with the property. You might even be able to set something up with Pete, who knows the story first hand. Start at the beginning. It's not really that unusual.
I'm not sure why you want a major involved at this point. Teck sure didn't do Western Copper any favours.
You'll note from my previous postings I've never said Manhattan was a slam dunk, but nor do I think it is illogical or upside down. I'm willing to listen to you or anyone that thinks otherwise, but right now I think it is pretty decent as speculations go. |
