GB, I do not know why ORXX was ever priced at $7.5 (capitalization of $180 MM, with no sales, no proven resources, no proven extraction technology), it might not have been a pump, but it surely was not rational valuation. Once people started to see that it was not a rational valuation they started to bail out. As for the stock for St Maria, yes, it may not be a floorless and not even tradeable, but if I held a piece of paper that said I will own let say 5 MM shares and the price is let say few bucks, and I realize the price should really be few cents, I would sell short against the block (the piece of paper that says I am entitled to 5 MM shares). If no one thinks it is worth north of a buck, the MM is not going to step into the breach and take the loss, thus the price drops precipitously. If the deal with St Maria was for a dollar face value in shares, then it is a form of a floorless. Have you seen a form 8k that describes the details of the deal?
In any event, personally, I am not interested in ORXX since I have no personal faith in the Haber process and without it success, it seems that ORXX intrinsic valuation might not even be a penny. The former machinations and potential short term up and down due to various MM's games are of little importance for that basic tenet.
Good luck
Zeev |
