Hi Sense
The price here has declined... because the value has dropped. The value has dropped for at least two obvious reasons. One, and the most important, is because management is incompetent and has failed in creating value... and has instead destroyed it... and that fact has become increasingly obvious over time as mattering, even to people who didn't get it, before. Management trumps geology. The value in the rocks (if there is any) doesn't matter... if the management aren't capable of doing the right things to have that value be realized in a way that BENEFITS shareholders. The value in the rocks (if there is any) doesn't matter... if the management aren't capable of ensuring that value remains attached to the shares. I can see nothing in the way of change occurring here that suggests to me that the result produced by the management here thus far was a "one off"... So, to see any value existing here to justify taking a risk with a management whose judgment I know I can't trust, I need to have a reason to think management can succeed in the future... where they have not in the past. The other reason the price has declined... is because the market value of the underlying assets has been declining... even to the point that the "asset" clearly is not economically viable. In that context, baring change in management, or a changed performance by the management, the only thing that might work to move Copper Fox share prices higher... is a reversal in the price trend in copper. What has to happen for that to occur ? When is that likely to occur ?
I have to disagree with you here. If we were in the same economic environment as in 2011, we would not be sitting at 14 cents even with the problems as mentioned in your post. We would of course not be sitting happily at 2.50$, but the SP would perhaps high enough that many of us could (and would) say the hell with this and take a more reasonable loss then selling now at 90% or more.
I think that Dsikorsk has a point in saying that at this juncture if you have lost 95$ out of 100$ losing another 4$ would not bring on more stress to the unfortunate CUU investor who has no real choice other than hoping that the economic situation will eventually improve, even if it takes 5-10 years. Of course each investor has his own timeline and age plays a major role. Has long as we don't declare bankruptcy, we can always dream of many multiples from this point. What else can we really hope for. Our loss is not 'on paper' only anymore, it is quite real.
The market as a whole would be much higher and acquisitions would be done at more reasonable prices. We would can easily compare 52 weeks lows between lets say, 2011 to 2015.
Pat66 |
