Everyone:
What is the true value of SGGNF shares???
First, I would like to say that in my opinion, I feel that a large portion of SGGNF selling can be attributed to shareholders frustrations and not necessarily shareholders reservations towards Sungold's projects. We're all aware that, at times the flow of information or even the expectations of answers to our questions can be an arduous affair. I'm sure many shareholders, myself included, have had "conversations" With Kim Hart (Mr. Congeniality) and found him to be at times, aloof and abrupt. Understandably, maybe in his defense, Mr. Hart has to deal with hundreds of concerned callers every month and this may lead to a strain on his emotions. But, Kim Hart must realize that, these are stressful times for all shareholders and it's only natural for shareholders to want their concerns addressed!
Regardless, everyone should be aware that, as shareholders, it is of paramount importance that we understand and arrive at a clear consensus on our share value. Perhaps then, can we have a positive impact not only on ourselves, but also on our fellow shareholders.
Now, let's all take a trip down memory lane.......
Before Sungold was halted on Feb 28/97, the sentiments of all shareholders were exceedingly high! And why not, with the share price soaring and expectations of the Gun Lake Band moving closer to "federal recognition", and Sungold which were at the time, part of the Canadian Trade Mission to S. Korea, had signed J.V. agreements. Wow! Weren't those great times! So, what the hell happened? Well, the notorious VSE decided everyone was having too much fun and halted trading! The share price at the time of the VSE halt was $17.50 (5.83 post split) and about $4.50 US.
Now, lets examine what progress Sungold has made during the time Sungold was halted (Feb 28/97), to present date.
First, before the halt, the GLB was only on the "Active Consideration List". Now they have preliminary federal recognition and the "comment period" will end Jan.16/98 with the official signing ceremony to follow, making the GLB the 12th federally recognized tribe in the state of Michigan. As reported in the Detroit News, hundreds of tribal groups seek federal status and only a handful succeed!
Second, Sungold has signed a Letter of Intent for the Financing/Management of the Michigan Project. As everyone will agree, this was extraordinary news, which confirmed the validity of the Michigan Project. Remember, before the halt there were no financial partners!
Thirdly, lets not forget that the Richmond Project did not exist until AFTER the VSE halt!
Because Sungold has no earnings yet, we can't apply certain multiples to assign a true value to Sungold shares. We can however apply multiples to Sungold's projected future earnings BUT what are the shares worth now???
Well, I would like to compare Sungold to pharmaceutical companies.
Really, Let me explain.
Sungold's projects have gone through many progressive stages; Richmond and Michigan are now entering the final stages before "commercialization". Pharmaceutical company's progress through Phase 1 to 4 before going commercial and as each Phase (stage) is completed; value is added to the share price. The same reasoning can be applied to Sungold. Obviously, then with all the progress they made to date, the share price has to be worth more than $4.50 US!
Also, compare the Risk/Reward Ratio from before the halt to present date. We can clearly see that the Risk Factor has been substantially reduced as a result of project advancements and the Reward Factor has been greatly increased with the project advancements, and the addition of the Richmond Downs Project!
For all those contemplating selling their shares now, please consider waiting until Feb.19/98 for the AGM. If you sell now, you're selling your shares at a huge discount BUT if you wait and sell after the AGM, you'll be receiving true market value for your shares!
P.S. Expect a positive press release shortly and always remember, "SUCCESS IS THE BEST REVENGE"!!!
All the best!
S.M. |
