To Bruce and all you AGO fans.
Here are my thoughts after talking to them last week.
They have 41.6 ml. shares outstanding in the open market. They also have 2 ml. warrants in the hands of Emerging Markets Gold Fund. The strike price was $1.25 per share with an out date of March 10. They did not excercize this right and are now negotiating for a a new date with a higher call price. Of course this is in their favor as long as the share price goes up. Also, there are another 5.9 ml. shares uncirculated that are held by the big shots etc. That totals to 49.5 million shares fully dilu. Much more than I thought. I did not do my DD before I purchased. STUPID ME! I always do my homework.
They have approximately 480000 oz of gold in the ground presently, so they say. That works out to $3.39 per share with gold at $350. PLUS they have $14 ml. in cash. So it looks like a good play. They are actively drilling in good claims, have another play now going on in Greece, the Slovak claims could possibly become an open pit operation which makes the gold cheep to produce, and have sufficient cash so as not to go back to the market with a new share issue.
However, I do not like the large share float. I think this is what is making the company not too exciting to investors.
My personal conclusion: I will hang in and look for the next set of drill results but only because I do not have too much invested. I will get out as soon as profitable and wait to see if the stock really starts to move, then buy in. My advice? Watch the volumes along with the share price. If you see big volume with a breakout then butt in heavy. Otherwise just watch. But then what do I know? No more than the rest of you. You dos your homework, pays you money, and takes your chances.
I really bought in to soon on this one because I listened to Kevin Smith and didn't do my prelim work myself. My fault. Bad Stevie! Don't be greedy. Remember, all brokers are getting paid to seduce us to buy or sell.
Well there are my thoughts, for what their worth. As you can tell I am not very enthused about AGO right now.
Hope you are all going to make a profit on this one in the long run.
Hello to John Mc if your still on this thread.
Later,
Stevie. |
