All : MDIN
Trader J asked me to make another post on this stock and try to place a possible value on it. First, let me say that this is a non-reporting, penny stock, ergo very risky. Only money you are willing to lose should be used for this issue. I can't stress this enough.
A Press Release from the company is expected any day now announcing the commencement and schedule of the drill program. This is the make or break moment for a gold exploration company. If the cores are rich, the share price will rise.
For some background on the company, please refer to my previous post #reply-7381061. Since my first post, the share price has increased 4 fold. Today's trading volume was the highest ever at 3.8mm shares changing hands. Although TA is not necessarily useful for a penny stock, the chart looks good and the MACD is on a buy signal:
clearstation.com
MDIN is also expecting a CNBC plug from Charles Payne soon, #reply-7432987
Right now there are 3 issues at play. The first is proving up the Altos de Lipangue property, the second, proving up the Los Dos Marias property, and the third is a lawsuit against Dayton Mining over disputed land in Chile. These are covered in the link above and on the research thread:
Subject 22738
TJ also asked me to place some estimate of the value of the stock. That is completely subjective. If you talk to the MDIN detractors it's worthless, but among those who believe that MDIN has the goods, estimates range from $4/share all the way up to $20+/share.
For the three items listed above here are my personal expectation:
I am guessing a successful drill project at the Altos de Lipangue which give the expected results is worth $4-7+, the Los Dos Marias propery could be worth worth $2-7+, and the Lawsuit with DAY over the three properties at the Andacollo is worth 30 cents to 80 cents initially. If we win this suit, it is likely that we will win the additional suits against DAY filed in the US and Canada. This would be worth another 50 cents to a dollar. But you have to remember that MDIN controls about 300 properties. And I know they are working on at least one of the others which has great potential. So my guess is $6.30 to 13.80+. This is all my opinion only. The core results will tell the story.
The way this will play out is they will drill their properties, and once they have the cores, the majors will examine them and hopefully a bidding war will start. The price should move up very rapidly at that point, and end in a buyout. Be prepared to hold MDIN for 4 to 6 months to get your maximum value from the stock.
It is unlikely that MDIN would chose to become a mining company although they have been digging and stockpiling ore. I have been told that several majors are lining up to look at the core samples.
Again be careful, all of the above assumes the gold is there. In my previous post I talked about the Inverse Polarity/Resistivity survey indicating a very great likelihood of that being so. There is also a previously drilled shallow core that is enticing, but from the standpoint of prudence, it is important to remember that all we have is dirt until the cores are drilled and assayed.
BE CAREFUL!!!! Do not risk what you cannot lose.
For more information on the company refer to the research thread listed above, and the company web site:
medinahenergy.com
For questions or discussion, do not post the research thread, but rather, go to the MDIN DISCUSSION THREAD:
Subject 16900
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