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Politics : Welcome to Slider's Dugout
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To: SliderOnTheBlack who wrote (13625)11/24/2008 7:07:08 PM
From: orkrious1 Recommendation  Read Replies (1) of 50340
 
MFN is going to have to dilute. Get out of
MFN -- NOW. I'm surprised it wasn't whacked
harder today...

It probably wasn't whacked hard because if they have to dilute it won't be much.

check out amarksp's projections

Message 25180566

I compared them to the feasibility study (it's on Sedar, 3/08, p. 71) and they look reasonable. even if they can't ramp up their production quite quickly enough and they run short of money, what might they need? worst case $10 mil? that's just 5% of their market cap. and they just had their line increased by $10 mil so credit isn't shut off to everyone. they may be able to get a few more bucks from the bank.

and they may not even run out of cash. even if things don't go perfectly maybe they will just hold back some payables a few weeks.

there's no question the shelf financing spooked some people. they had to file it just in case. did it have to be so big? who knows, maybe they are just planning for the future.

Once they reach full production (even if it takes eight or nine months, not five) they aren't going to be very short of cash). They are selling for 1x cash flow at $720 PoG. Imagine what happens with PoG at $817 now, or higher next month and year.

there's also a big short interest to give it some rocket fuel.

I bought the dip last week and I added some into the close today.
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