Mongolia Gold Resources Message Board

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Gold/Mining/Energy : Mongolia Gold Resources

MGR 21.38

+0.1%

Nov 19 3:59 PM EST

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To: d:oug who wrote (3345)	4/19/1999 10:36:00 PM
From: Bearcatbob	Read Replies (1) of 4066

Doug, In order to raise money the share price has to be above a threshold - I think .15. So, if there are 20 million outstanding at .08 and the shares are consolidated so that there are 1 million outstanding the theoretical price becomes .08X20 or 1.60. But now there is a lot of "air" under 1.60 so the stock has a lot of room to fall and usually does. The benefit is that the company can now issue new shares for cash and stay alive. If the cash is well used the company can survive and prosper. If it is pissed away the whole cycle can repeat itself. If the consolidation takes place the price will rise and then fall. The company will issue shares and raise money. How the money is spent is key for the long run. Ideally there would be an agreement in place for the money to be used. My opinion and understanding. Let's see what others say. Please remember I predicted this. Bob

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