Ok lets get discussing the company a bit, perhaps everyone has put away their stilettos and we won't have any back stabbing :))
What is the Company's current value is a question that oft times comes up. Some saying the assets are worth 4 Million and the company saying it's some $200,000,000
Lets bear in mind here, that a tract of land, as it sits, minerals in the ground, is one thing. It's potential value, assuming someone wants to mine it, is a horse of a totally different color. The company in this case chose to assign a potential value to the deposits. They have stated an intent to mine these deposits. In light of that they are looking at the potential value of the land in assigning the $200,000,000 You can argue all day as to how legitimate this figure is. But even if its $75,000,000 and they successfully mine it, the stock will be worth a lot more then we are paying for it
Now comes the rub will they be able to realize that "potential". That's what they are going to try to do and why they are selling their stock. The fact they came on the market by reverse merger isn't anything unusual on the OTC:BB. It's seen as a rather quick and "paper work free" way of going public. Does this have the potential for miss use? Sure it does. But, on the other hand, many legitimate companies have gone public following this route.
When we buy the stock we are betting the company will successfully work the land. They are claiming that newer technology will allow them to more easily find "past over" deposits and are betting they will be profitable doing it.
The whole thing appears to be doable, none of us are experts but the potential appears to us, to be worth more then the few pennies the stock originally sold for. In that light, we invest. Is it a sure thing? We have no idea....nothing is for sure anywhere, let alone the OTC:BB. But it appears to us, at this point, that it's a legitimate gamble. which after all, most stocks are.
LT |
