Barry, what you have said is very real, and I agree that if MGR does become
a sucessful company later on, then future shareholders who buy shares after
the 20:1 consolidation will obtain the type of returns those shareholders
who brought shares in the past when Bumbat looked like a good thing, expected.
The only way I can see current shareholders getting back their initial
investment is to wait and hope that the Bumbat matter is settled in a way
satisfactory to MGR, and the price of gold goes up. This is the only way,
because as you wrote, Bumbat took current shareholders investment and the
money is gone. To reflect this real lost, a 20:1 consolidation is required so that any new money invested into MGR is used to advance MGR
into new areas. New money would not be invested without a consolidation
because the ratio of shares held by the current investors would place a too high
ratio of return.
In my opinion, if Dave did not do a 20:1 consolidation and the price of gold
remained at current level, then my guess is that even with a MAC settlement
with the Bank, MGR would need to have 99% ownership and control of Bumbat
to just keep mgr share price at .13, the number speculation took it with
the Bumbat settlement looking like a sure thing last month.
Today I will guess that many shareholders would sell at .13 just to end the
pain and anger, and the current .05 is just too low. Maybe after the 20:1
happens, and with luck Dave Webb announces Bumbat and maybe other good
investment news, that maybe the mgr share price can reach a higher value
that most current shareholders can grudging accept so as to stop the waiting.
I want to stay in MGR now and later after the 20:1, assuming it happens.
If the 20:1 does not happen, then it will just be a wait until the Bumbat
and price of gold are more agreeable to MGR and take mgr share price to a
level held a year or two ago.
If the 20:1 happens and Dave Webb can present his projection of what the new
named MGR will be, then I will buy more mgr shares if Dave can do a good
selling of this changed company.
Seems like in a couple months much more about Dave Webb and the changed
MGR Company will be knowned.
As for,
<<Incentive stock options to insiders and, if available, private
placements with warrants will soon eclipse the current shareholders
equity.>>
yes, and hopefully those persons who run MGR are very conservative in what
is allowed under the law when it comes to <<stock options to insiders>>.
Doug |
