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Gold/Mining/Energy : Naxos Resources (NAXOF) -- Ignore unavailable to you. Want to Upgrade?

To: soxan who wrote (18432)	4/5/1999 9:15:00 PM
From: jlallen	Respond to of 20681

Personally, I can not bring myself to buy this stock again. JLA

To: soxan who wrote (18432)	4/6/1999 8:30:00 AM
From: Max Haber	Respond to of 20681

Possibly (only a guess)it is management that is selling their shares. Has anyone checked with the ASC lately? Wait 10 days and see if there is a filing. The other group the "concerned shareholders" were (are)looking to maximize shareholder value and to have the company be accountable to the shareholders. The only way Naxos currently makes a move is when their back is against the wall. Management by reaction. I would assume that it is the other way around and the shareholder group is doing the buying not the selling. Perhaps it was the circular that was weighing on the stock showing how huge the salaries were and how much money was wasted It IS a possibility that management could be selling because they can replace share sold by voting themselves additional shares at the annual meeting later this month. They did that (voted themselves additional shares) just a couple of months ago, if you recall. It would be the third time in 12 months that management is compensated themselves with options. I believe, but not exactly sure, that the option price for management's options gets set based on the closing price immediately prior to the annual meeting. Timing is everything. Speaking of timing ---the Bob Gardner letter that referred to the pilot plant said it would be up and running without any problems in 60 days. That, from the time it was written, would put it two weeks AFTER the annual meeting. Perfect. An annual meeting quote "Well that is a good question, I can't answer it right now but we'll have that answer in two more weeks" Soxan, I do agree that the real question is stock and where we go from here. Politics can do great harm to any company, including Naxos. Nothing would please me more than a collaborative effort, from all parties involved, to put there minds together get the job of proving the ore body done in a timely fashion. Max

To: soxan who wrote (18432)	4/6/1999 11:13:00 AM
From: Henry Volquardsen	Respond to of 20681

soxan, I think the question of whether Naxos is a buy, hold or sell depends on individual circumstances and perspective. I do not see Naxos as a buy at these levels. The company has major obstacles to hurdle. 1) they are dealing with a very complex ore and it may take a long time to unlock. 2) they are very short of cash and I suspect further financing will be difficult. Naxos could run out of funds before they solve the riddle. 3) I've long felt the major obstacle facing Naxos is the shareholder base. There is a major portion of the shareholder base that remain wedded to fanciful notions of both metallurgy and finance. This group is very vocal and form a major distraction to management. They are a constant threat to force management to fitter away scarce resources. 4) Management itself is unproven. The financing difficulty also make it likely that if successful it will be difficult for Naxos to generate the financing to exploit FL. My own opinion is that they will have to joint venture early in the process and this would put a cap on the potential Naxos share price. For argument sake I will say I believe this cap would be $10. So considering what I consider the very long odds against success and the upside potential I believe the risk/reward ratio on Naxos is not favorable enough to justify a buy. At least not at this level. I am not selling either. Frankly the stock price is so low that the proceeds from a sale would be immaterial. I will sell Naxos shares as I need tax losses. So by the end if next year at the latest I will sell. Until then I treat the shares as an option on the possibility that they will solve the riddle. So you can mark me as a hold but with an asterisk. Henry