To: JKNF who wrote (2463 ) 1/27/1999 8:33:00 AM From: Richard Mazzarella Read Replies (1) | Respond to
John, <<no reason to expect the bulk sample to be any less>> We won't know until they report the results, but I think the results will be great, it's baked in the cake. You need to understand that there are at least 4 different things going on at MGAU. There is the cinder cone property (1), the desert dirt property (2), the gold assays just reported for gold under the marble quarry (3), and the marble quarry (4) that will fund company development. The press release yesterday also suggests that MGAU may become a gold recovery company merging with J/L which would become a fifth. There is so much going on that it's very confusing to understand what the company is talking about in their press releases. Unfortunately the audience for the press releases are those that already have been following very closely. I'm confused about a number of issues. While that communication is nice for "insiders" it doesn't help bring in new investors that could appreciate the company stock. I think it's the current investors that have been buying. Since management will use operating profit to fund development and minimize stock dilution, stock price appreciation may not be a priority. If stock appreciation was a priority, the company would be communicating better to new potential investors, maybe even use a PR outfit to leverage the success. I suspect the stock price will be properly valued eventually based on earnings, or until the market begins to really speculate here. The positive is that the stock price compared to potential remains very cheap, but that's probably another reason for newbees to doubt. While they won't spend a dollar now, they will be happy to spend $50 when others do on the momentum.
