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 : Tusk Energy (TKE) -- Ignore unavailable to you. Want to Upgrade?

To: teevee who wrote (456)	5/14/1998 11:09:00 AM
From: grayhairs	Read Replies (1) \| Respond to of 1207

Hi teevee, I can not comment about the relative annual investments of private versus ASE/VSE listed juniors. (I've never attempted a comparison). And, I do not know anything about the "pocket depth" of the private entities involved in this play. But I do know from my own experience in running private entities that it can be difficult to maintain your participation in successful ventures. Bank lines will usually require personal guarantees, etc. Now, if you only have one successful project under way it may not be too bad. But, if you have 2 or 3 underway each with aggressive partners, it can become "demanding" if you do not want to dilute your interest. And, if a couple of those projects happen to involve 14,000 ft wells, well you know... But, yes teevee, I agree -- "GIVE ME THE PROBLEM, PLEASE!!" I'll also add that one additional and very good reason why "privates" merge\sell during times of high multiples is to fatten the cheque books so that they can "do it all over again when the multiples turn lower". [Been there, done that, thank you. Now, is that actually cashing in on an investment, or is it closing out a speculation? Does it matter?] Later, grayhairs P.S.--Not only are deals done on the backs of napkins I've done several multi-million dollar handshake deals that were never papered, not even on a napkin. And, I've "papered" similar deals only after the deals themselves had terminated. Why paper them then? Paper was required for the "audit trail" of the other party (public) involved in the deals. However, it is getting far more difficult and much more risky to do business that way today.