|
Larry and Tom: Both of you seem to have posted that Naxos was an all-or-nothing bet, and that the risk always existed that we could lose all of our money. I think that is not quite correct. When many of us first invested (May 1996 for me), your premise was correct. In fact, I posted, on several occasions, that I knew, coming in, that this stock would go to $100 or zero. However, when the multi ounce results from JL were not repeatable, and SFA became an option, the type of investment changed, with the upside potential being less than it once had been. Then Ledoux certified results from COC ore. At that point, buying Naxos stock was not, in my opinion, an all-or-nothing risk. Instead, while the upside price potential was less than it had been when we were hoping for 3 ounces per ton, the downside risk also was decreased. Anyone who bought based on Ledoux's certified results made an investment, in my opinion, and was reasonable in relying on the world class status of Ledoux. I bought more stock based on their results, and while I acknowledge that my original purchase, in 1996, was roughly equivalent to the purchase of a lottery ticket, I absolutely disagree with anyone who would contend that buying stock in 1998, after the release of Ledoux's results, was the same type of investment decision. Ledoux knew that Naxos was relying on them, and Ledoux knew, or reasonably should have known, that individual investors were relying on them. |
