Nothing is worth nothing at this point. What every investor will decide for his or her self is WHAT is the Value that I am willing to buy or willing to sell Medinah Gold at. Whether its the banker at the corner, the butcher, the hairdresser, the girl next door someone has to be a value on it. Sometimes one assigned value is way to low. Valuations can get out of hand sometimes based on FUTURE expectations. Take for instance the internet plays. Look at Microsoft, look at Dell, look at Compaq. Its just a matter of what an investor is willing to pay based on THEIR expectations. Sometimes those expectations are swayed by "experts", whether it be a neighbor, a broker, a hypster, their butcher, their hairdresser, etc.
We can look at the properties that Medinah Gold has under its umbrella and thru our DD, and sharing it with others, discuss it amongst ourselves, call on experts for their help..thru this process we can "in our minds" come up with a rational value for the companies assets divided by shares outstanding(fully diluted) and arrive at a fair market value. Medinah Gold does have verifiable assets that are worth something in today's market depressed at is may be.
The fun part about the Medinah Gold dividend is that once the physical shares go to the clearing corp for dispersment to the brokerage houses their may be a small problem. As Larry eluded to in the letter their may exist a SHORT position in delivering those dividends. How can that be?...Hmmmmm well Alice lets kill two birds with one stone. By making Medinah Gold a privately held company the brokerage houses/naked shorts CAN NOT deliver a certificate to satisfy what they are saying SHOULD BE in the account. Uh ohhhhh Alice, what do we do.....But thats just PART I, PART II with all the accounting occuring as a result of the dividend the cooked books get uncovered so to speak, and the result of having to cover one *ss is a good way to put it. So ya cook 'em on PART II and ya cook 'em on PART I. The fun part about PART I is that Medinah Gold and its board of directors (way to go GAry) can decide when they will trade the stock. How would you like to be short a dividend that you can't deliver and have NO IDEA WHEN you'll have the chance to do so............Its called NAKED SHORT GUMBO.. |
