I was wrong when I wrote I didn't think Fung could raise new money to pay off the old money and avoid bankruptcy but I was right when I wrote that raising money (debt) is the only thing Fung has ever been good at.

I'm not surprised by the lackluster share price and I won't be surprised if the share price doesn't rise more than a few cents even if KRY can raise the 120 million of new debt.

There in lies the problem. New debt. Yes we can avoid bankruptcy for now but, as posted by EZ , until KRY can show some real assets, or signs of a substantial arbitration settlement, the retail investor will be unimpressed.

There are a few factors holding us down and a few that could raise us up.

Down Factors

1. This proposed financing deal has to close. There is still doubt KRY can raise the money although I doubt KRY would have announced anything without most of the package being presold. The calendar will decide that question in about 3 weeks.

2. Common shareholders want to know the details of the financing and how much they might gain or lose in an arbitration award/settlement. Even if you buy at these low prices if, in the end, the new bond holders and management get the vast majority of any settlement then KRY, once again, was a poor investment.

3. KRY's lousy history of promoting good news and its long history of failing to deliver on promises and timelines.

4. Venezuela publicly stating they don't play by the rules and that they never pay anything close to the full amount demanded.

5. Even if there is an award/settlement it's probably many years down the road and there is easier, faster money to be made in other stocks.

6. Threat of delisting off the TSX.

Up Factors

1. The deal closes on time.

2. The details of the deal show that the retail shareholders will get more than expected in any awards or settlements.

3. Venezuela starts making reasonable settlements on their arb cases. (If GRZ got a good settlement that alone could boost KRY over 50 cents.)

4. Better promotion of good news.

5. The death of Chavez and Castro. I think with these two idiots still around even US educated government officials in Venezuela feel they can't even speak of maybe changing some of the foreign investement destroying policies that are currently strangling Venezuela.

6. No delisting on the TSX.

Don't get me wrong. Yesterday's news was surprising and welcomed but it was far from great news. I think we are a long way away from ever seeing a dime out of Venezuela and that, alone, is keeping new investors away from KRY.

Still waiting,

Cividale