Janice:
Here's my try -
"Mountain Energy is not currently operational. How on earth does it expect this to achieve such miracles in so short a time?"
Why do you say they are not operational? They have assets. We know that. We do not know the total value of these assets but we pretty much know that the coal and coal-bed methane assets identified originally have a net worth of about $110MM. No idea of net worth of other mineral resources (lumber, oil, gas, etc). We do not know how much cash they are paying for new mineral rights (8000 acres). But it does not take much of a stretch to see a total of $500MM net worth out of this. The fact of the matter is that the original $200MM was the value placed by the company on the original reserves and said nothing about what financial resources the company has. I refer you to the original PR. It says the properties and rights have a market value not the company.
"Mountain Energy owns and controls the mineral rights in West Virginia that contain approximately 1.98 billion cubic feet of gas and 10,000,000 tons of coal, as well as other properties that all combined, have an estimated fair market value in excess of $200,000,000 with approximately 70,000,000 shares outstanding after the acquisition. This translates to approximately $2.85 per share."
So for all we know ME could be a $500MM company already.
AND
<<are company representatives really saying this stuff to investors? >>
I have no idea. They never said this to me. |
