Silicon Investor (SI) -- The First Internet Community

STOCKTALK

We've detected that you're using an ad content blocking browser plug-in or feature. Ads provide a critical source of revenue to the continued operation of Silicon Investor. We ask that you disable ad blocking while on Silicon Investor in the best interests of our community. If you are not using an ad blocker but are still receiving this message, make sure your browser's tracking protection is set to the 'standard' level.

Gold/Mining/Energy : SOUTHERNERA (t.SUF) -- Ignore unavailable to you. Want to Upgrade?

To: Valuepro who wrote (4385)	8/23/1999 9:36:00 PM
From: gemsearcher	Read Replies (2) \| Respond to of 7235

Hello Valuepro. I don't think it's too little , too late. That would be tantamount to giving up and I for one am not there yet for the following reasons: 1. The line has been drawn in the market sand. For the board of a public exploration co. with one producing asset to authorize an issuer bid , serious soul-searching is a sine qua non. I was against an issuer bid at $5 , had mixed feelings at $4 and was in favour of one at $3 when it became very clear that CJ's market plea was ignored. The co. is trading below it's liquidation value - with no debt! - and while there appeared to be support around $3 , the TSE forbids margin below that level. 2. An issuer bid will only work here if the co. shows that its faith in itself is justified. IOW , we need news in the near future and the board would know that. We know news has to be coming - Marsfontein exploration , Camafuca and , oh yeah , Messina ; the board's action today would suggest to me that they believe that that news will be favourably received. 3. An issuer bid will afford a brokerage firm the opportunity to make some commission $ - when was the last time SUF paid any of these guys ?; a new motivated supporter. 4. Slice it , dice it , wrap it any way you want it - this co. is worth a lot more than $3. What we have seen lately in the share price is a confidence crisis in the market - I'm not suggesting wholly unjustified . This is a first step - not I acknowledge a cure-all - in seeking to restore that confidence. 5. Finally , and FWIW , I have considerable confidence that the 3 new board members would not sanction this action unless they firmly believed 4. above - they are "stand-up" people with a very good rep. At least SUF is interesting again! Regards.