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a few observations from a long time lurker and active trader and investor. first of all, dont mean to be rude, but jadrew your reasoning is ridiculous. how can you possibly give a arbitrary value to every diamond based on other company's mines. a diamond mine is worth what it is worth, solely based on what is in it. it might have $100mil or $500 mil or $20 billion worht of diamonds. they are all of course different. no one has much of an idea how much a mine contains until they begin mining. to say that every commercial mine is worth $2 billion, or $1.7 billion is ridiculous. again, I don't mean to be obnoxious, but your reasoning is based on value that is not there.
also, I wanted to bring to your attention how overvalued your stock probably is. it aca has found, what 10, 20 kimberlites and has very preliminary results from a few?? and its trading at over $5?? now lets compare that to canabrava diamond corp, a company with land in brazil and ontario. that have drilled and confirmed over 100 kimberlites thus far. and have 500 or so more priority targets. please check it out if you dont believe me. also, they have a tremendous jv partner in teck, doing all the drilling for them. teck has also built a processing plant on site in brazil, which is up and operating, processing bulk samples as we speak. they are years into their exploration down there, and things are progressing nicely. and with teck investing all that money, obviously it is a great property, because they have enough to do without wasting time and money on intial exploration projects. so, with that said, and considering both cnb and aca have about the same number of shares outstanding, what iscnb trading at?? 3.75 at today's close!! why, I dont know, other than it is provably fair value for a company at the stage they are at. so compared to aca, with a minimal number of kimberlite, no jv, and very early in their process, is the stock price of $5,6,7 justified?? it is hard to see how.
before you all ask, yes I own cnb and have for 2 years. I have made a nice double but expect much more, based on the law of averages. with all those kimberlites, I cant imagine all of them being uneconomic. so all of you aca holders, be careful. I just can't see your current prices justified. yes I shorted aca back when it was at $7.50, and covered at $5. I will do it again if it gets to those outrageous levels again.
so again, be careful and look at the situation logically instead of with greedy eyes, as we all tend to do at times. |
