RE: 50=1 is a trap... (from my evil twin on SH)
posted on
Jun 22, 2013 03:51PM
Black Horse deposit has an Inferred Resource Now 85.9 Million Tonnes @ 34.5%
...for those who would want to sell KWG shares on the cheap. We all know that Frank wants to play on the big board...what if he already had an interested partner, but this entity can't buy a penny stock and Frank doesn't want to do any more dilution i.e. PP...what if the 50-1 was just the perfect trap for the sellers but at the same time, the perfect opportunity for the partner to acquire a large position at a very low price, in a very short time, thanks to all of those who will want to sell into the bid....what if the partner was to install an iceberg for the supershare on the Bid side and soak up everything that Clfs friends would want to unload at $2.50, then $2,69, then $2.74, then at $??, then at $??. It's the only way for a potential partner to gain a sizable position (say 50 to 75 million shares) without causing the price to skyrocket before reaching their goal. IMO this potential scenario is supported by the following assumptions and facts 1)Frank is not an idiot and has a lot of skin in the game; he bought another half a mil shares last week, 2)CLF is compromized financially but they still can exercise to much control with a vote and their majority position in BD, 3) billions will be required to build infrastructure; only a solid partner can take this on and get paid to wait (with price appreciation) until production gets going, 4) fed gov involvement will only happen if and when 3P qualification criteria is met, the most important of which is 75% funding in place with a solid credible plan for development including deep pockets to handle unexpected delays or overages, 5) even if Frank has a potential partner who is interested in th future potential of KWG, he can only express it in cryptic terms which describe best prospects or intentions i.e. playing with the big boys on the big board, 6) CLF has peeied in the Cornflakes in a serious way, and will not be accepted by either Fed Gov or FNs for partnership in moving forward, 7) "necessity is the mother of invention" and/or creative / desperate measures when it comes to moving forward in spite of a discredited senior partner who has lost all credibility and financial solvency. Conclusion = MHO, Frank would not be proposing the 50-1 if there wasn't an interested entity already in place or ready to buy everything that goes on the Ask. I think Frank has a good grasp of not only this financial chess game but also the historical significance of every strategic decision. Good luck to all longs...Pear3
Something to seriously consider when you vote...give Frank what he needs to put Goliath in his rightful place...the back seat.
Good luck to all KWG longs,
Le Penseur