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 : Geodex Resources - GXM.V (was Agate Bay ABE) -- Ignore unavailable to you. Want to Upgrade?

To: Joseph LEE who wrote (119)	5/15/1998 1:06:00 PM
From: Baywall	Read Replies (1) \| Respond to of 210

Thanks Joseph, I was aware of the shares for debt plan for some time. Could you tell me whether the issued shares are free trading now, or else how long will it be before they do become free trading? This is rather critical for my analysis. LVL

To: Joseph LEE who wrote (119)	5/15/1998 4:20:00 PM
From: Baywall	Respond to of 210

Joseph, The 740,457 shares represents over 20% when added in with the current o/s shares. No market reaction has occurred. I would like to have these and other large holders keep Geodex a tight stock. This restricted supply will help the firm later on, when larger financing is required. I don't know who the creditors are, but it would be desirable that they be held by associated groups and/or principals. Shares for debt is often a method through which principals or a new controlling group can obtain larger stock positions. In the future, private placements will occur to finance exploration. I wish that the stock will be held tightly to limit overhead supply and thus provide less hinderance to any price advances. A higher stock price should exist. Exploration is not cheap. A higher stock price will depend on the potential of properties, initial exploration success and a return of optimism on the VSE. LVL

To: Joseph LEE who wrote (119)	5/16/1998 12:05:00 PM
From: Baywall	Respond to of 210

Joseph, Some investors may have been concerned with the dilution at 18 cents. At this early stage with no properties announced, the market will not valuate the firm higher. Was the dilution necessary at this point or could it have waited when stock price may have increased? I don't know the answer, but if the principals were putting their own money into the firm, thus in effect becoming creditors, it is possible they received some of the shares. This is nothing unusual in the junior mining industry. If such is the case, one may feel this is an unfair advantage to principals, but not necessarily since they need some significant potential returns if they are to put in the effort required. The small investor can always buy in at the market price regardless of what the principals/associated parties are doing. As the stock becomes more diluted investors may feel uncomfortable. It will all depend on the market capitalization investors will assign to the property acquisitions. Shares for debt are often immediately tradeable, but they may have restrictions placed on them. That is why message #121 posed the free-trading questions and were related to message #122 on tightly held share structure. In my talks with management over the past 7 months I have not detected any hype on their part. They stated what they are doing and some general plans. If anything, my TA could be viewed by some as hype because it is still unproven with Geodex. Works in theory and back-testing, although not always with the required consensus. It would be difficult to believe that TA is 100% accurate. I would be comfortably retired and no books would be published on the subject if this were true. I believe the news release on the property(s) is next. Thereafter I assume, will come NPV of the project(s), analyst commentaries and price projections. Another cycle will have begun. LVL