Trackman, the extent of the dilution was a big surprise to me. I've held BXS for well over a year now, so I've followed the play in that time. Before Krenbrink renigged on his previous contract with BXS, the same profit potential was there ($470/cu m), but with no dilution, so my expectation (as was everyone elses) that when the quarry got put into production, we'd have at least a 10 bagger -- from the 1.00-1.20 level the stock was at then. After Krenbrink renigged and Jim Bond couldn't get it solved with the lawyers, the stock dropped 3X to about 0.30. So when Solid Play says this is still a great deal, of course it is. It just won't go 10x from 1.00, it'll go 10x from 0.30. If you're lucky enough to buy in now, you will get a good piece of that action -- without having had to live through the disasterous times the rest of us (who didn't sell) did. I averaged down to help get improve my overall return, so if it really goes to 2.50 or so, I'll make out quite well -- IF KRENBRINK DOESN'T SCREW US AGAIN.
Yes, I AM disappointed by the great amount of dilution necessary to solve this stupid 3rd world country problem. It was Krenbrinks' doing. But he doesn't suffer, so he doesn't care. He could have gotten his $8-10 million from BXS shares at 1.00/share. Now he's crashed the stock, so he gets his $8-10 million from BXS shares at 0.40. Same amount of $$$ to him. Only ones to lose are the long-suffering BXS shareholders from the (unnecessary) extra 2.5X dilution. If BXS shareholders don't average down to compensate for his stupidity, then they will have a hard time getting back more than their original investment.
I guess you can tell I'm a little pissed, even though I think I'll come out OK. Other shareholders most likely feel the same. Ask.
Walter |
