Re: Promotion vs Results
in response to
by
posted on
Jan 05, 2010 10:20AM
Creating shareholder wealth by advancing gold projects through the exploration and mine development cycle.
>>Why not Promotion AND Results?<<
I absolutely agree. Some would say that for long term investors, which I think most of us are, promotion doesn't matter because the value of the company ultimately depends on whether they produce or not. HOWEVER, and this is a big however, promotion does determine where the share price is in the interim- like when they do a financing. Kodiak recently issued over 20M shares to raise $13M. Compare that to the financing in 2007 when they issued 14M shares and raised $54M- lots more money and much less dilution. The difference? The interim share price. Now I know that the first financing was done at the height of the frenzy over the GM discovery, and that the sp would naturally drift down, but I do think that more and better publicity in the meantime would have kept the share price higher than the depths to which it has sunk. Promotion costs little or nothing, but makes a big difference in how much OUR shares are diluted, how much money is raised, and how fast this company can move forward. AIMHO.
spiny