Bill, good post you did. No information to determine if MGR will survive,
but it did wake me up to realize that part of the possibilities of these
under $5 or under $1 or under 10 cents stocks is that part of the process
to get to being sucessful can include rounds of consolidation when the company
is not that 1 in a thousand to have all go as planned.
As for your comment:
<< This 20:1 consolidation sounds excessive, a 6:1 would be better
and would take the value up above the lower limit. >>
Let me assume that Dave is not the reckless type,
and Dave knows as Bill has posteded that,
<< many companies have done this consolidation many times
and it is normal in the evolution of a junior.
Few go from dirt to Barrick in one fell swoop. >>
and also lets assume that there is noone or company out there waiting
for new Directors and the consolidation to happen before entering MGR.
Ok, so to me the only reason for Dave to do a 20:1, which is excessive,
is that it will draw in more investment money than a 6:1, and Dave needs
this "more" money to fund the stuff MGR now has ready to develope.
If so, then I hope Dave also has some "secrets" that tell him that these
new things for MGR to get into have good promise. Also, in country, I hope.
If not, then I think Dave would have done a 6:1 as Bill mentioned, with
the understanding that its just to move MGR forward in slow motion,
waiting for the price of gold and Bumbat to raise and shine.
But I like the answer BearCatBob put forth, in that a company hiding in the
shadows knows of great things possible by MGR, excluding Bumbat, and all
that is needed is an influx of money for big payoffs later. But this company,
or rich person, has the upper hand and requires a big dilution in current
shareholders thru a 20:1 so that it will hold most of the shares.
Sounds like, at the same time, the glass is 1/2 full and 1/2 empty.
Once upon a time the glass was completely full,
then 3/4 then 1/2 then 1/4,
and now almost empty.
So maybe this 20:1 will fill the glass up to 1/4,
and maybe if it does not happen in the voting,
if no 20:1 happens, then maybe the glass will drain to empty.
That said, when time for me to vote, I vote Yes for a 20:1.
Doug |
