Well the Press Release sez, a value of $28 million for the latest timber cruise. That my friends, is equal to approx. $2.00 @ a share fir the company's 50% interest. It is also noted, the numbers were kept conservative according to the company. Oh yes, these numbers were $US,NET,POST HARVEST. To my way of thinking, this PR is spelling things out for us in a rather conservative fashion. They further went on to estimate the total value of the concession at $400 million and that is equal to $20 @ share.
I found the last page to be of particular interest, where in the first paragraph the company expects to receive proposals from prospective buyers and will be reviewing for possible approval over the next 2-3 weeks. They obviously, have buyers in the wings.
Gee, I almost overlooked this point, but did you notice they now have a Letter of intent with Veamco. In the previous release it was merely a letter of interest. The fact that the PR was signed by both MYGD board member, and Tony Lanham, of Veamco, certainly suggests to me, the JV is eminent.
So, why are we going down? For one or more, of the following reasons I suspect:
1. MM are playing games...
2. Many investors were and are looking for a quick flip vs holding for the longer term.
3. Investors are very skittish especially since the BRe-x fiasco.
4. Buy the rumor, sell the news
Take your pick. The value is there.
Needless to say,, the way it has traded has been a disappointment.
FWIW, Steve
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