Richard,
You hit the nail on the head. Economic extraction is the crux. Are you listening Maxam??? Put this on your "War Room" wall:
IT'S THE ECONOMIC EXTRACTION, STUPID!!!
Credibility is not served by forming a spin-off company called Maxam Custom Milling when you cannot recover metals from your own ore in bulk testing. Keep the damn shares of MCM you want to give us shareholders. What a sick, twisted, insult to our intelligence!
When governments get in trouble, they print more money and issue more debt. We are seeing how well that works with the mess in Asia, and the US debt will come to haunt us as well. But companies cannot get away with this. They do not have the fiat power that governments have. Printing more stock (preferred or otherwise) in response to financial distress is dilution, not a solution (oh jesus, Jesse Jackson just entered my body!).
Rand was right. The stock price does reflect real problems with the company, not just the general gold stock market tone as I had suggested in earlier posts. My hat is off to you, Rand. And Doug,
I hope Maxam does pay heed to the posts on this thread, as you suggested. Our ideas cannot be any wackier than theirs.
Finally, it appears to me, and I could be dead wrong, that gold and gold stocks might be near a turning point. The daily and weekly charts of gold futures and the XAU show a declining wedge formation. That is usually bullish. If the dollar weakens against the yen, as some think is imminent, gold prices in US dollar terms will climb. We will see.
A better tone in the general metals market will be more friendly to junior miners, as speculators will smell profits and move in our direction. It is the only hope I see for the stock price of this horribly mismanaged company, which is doing its best to earn the appellation MaxScam, IMO. |
