Our wealth comes not from ourselves but from God...so I look at holding as some sort of penance for past sins.
I've met the Big 3, CEO, IR and geologist, but haven't had the pleasure of meeting Ralph yet. Sometimes I wonder if Ralph is part of mgt or just a shareholder particularly seduced by IR's siren song...everything is fine, production is coming, DWA is coming...I can feel my muscles relax and my pulse and respirations decrease.
The question of course, is not what has happened but what will happen. Any wise business man (woman) will tell you that it is easier to keep existing customers than to recruit new ones, so they usually try to keep existing customers. So it is worrisome when people who have believed the CMR story for years and placed actual cash at risk and suffered the consequences (if you count lost opportunity costs I'm estimating 2 social classes for some of us) decide to bail.
The problem as I see it [note of record: I have sold no shares, last bought 20 months ago at .78] for many of us is credibility; as in does management have any?
If things are hunky dory, (confer any of Ralph's 600 posts over the last 4 years) then why are we struggling to hold .50, prices last seen 2 years ago when Co was $6 and Ni $3500/tonne?
Is the answer that the market is fairly pricing expected dilution from Binco distribution, mgt options, likelihood of refinery success?
Is the answer that Plexman is being forced out and has a bunch of options that he has to execute before leaving, or he needs the money. I have no proof to back that up. Just that there is a new CFO, and the price is going down, and as correctly noted by Ralph, no volume on the downside, just like 2 years ago. So it looks like a relatively small holder who is being forced to liquidate.
Is the answer that DWA is having trouble placing the paper for expansion, and is going to have to issue a ton at say .40 in a private placement. This may, in the medium to long term be good, as despite dilution, firm gets needed capital and production goes forth.
It's been said many times, many ways:
From whence ye sew, ye shall reap
Sew the wind, reap the whirlwind
My particular favorite is Malcom X: When you let your chickens out in the morning, whose roost do they go back to at night?
I remain hopeful and long.
It's really up to management. It's no longer a question of metals markets, Oz, The Congo, TB and malaria.
The question is are they men that can get the job done, or are they boys who sat around in a room in Toronto 10 years ago, hatched a pipe dream and proceeded to vaporize 32 mil in capital? Not cause they were bad people, or did anything unethical or below board, but simply because they did not have the skill necessary to pull it off? In our capitalist society, the winners win big, and the losers eke out an existence. These guys went for the brass ring and took a lot of us along.
The other serious question is control. If the survival of the company depended upon it, would mgt who currently appear to control well north of 50% of the voting shares, allow strong outside independent directors? Would mgt credibility be enhanced if no further options or warrants were issued to existing mgt [allow them to issue to recruit new talent]until price hit a buck?
Scripture tells us that our wealth comes not from ourselves.... |
