Re: Some thoughts
in response to
by
posted on
Sep 25, 2009 11:53AM
San Gold Corporation - one of Canada's most exciting new exploration companies and gold producers.
My initial message was posted to garner discussion. Sarcasm is evident but hey, that's just my personality shinnying through.
Talking to wpgmoney the yesterday and some of his thoughts got me thinking on the SP thing. Now, maybe I'm the only idiot here that doesn't understand, which is OK, been there before. Really how does a higher SP benefit SGR? What will it do for them? Now that they are established and no need to go to the market for $$$, why would they care? They can sit back and produce gold. Management can increase their salaries to industry standard which takes the shine off the options they were given.
Never mind management for now and lets look just at SGR. Again, how does a higher/lower SP benefit/hinder them. I can't seem to see how it does. With the trading going on with Jitney,anon, dundee, etc we seem to become the markets play thing. Why let the SP rise when you can make just as much money trading it for pennies. The lower the SP the smaller amount of capital needs to be tied up when trading it.
So why does Goodman have such a large stake in SGR? IMHO, to control the company. As a publicly trade company our on recourse is to vote in new management if we don't like the course the company is taking(Not saying that I'm that unhappy with management). I would imagine the proxy votes supporting managment greatly outweigh the SHs present at any AGM.
I don't think that my previous post or this post is negative. Only posted some things that have been lingering in the back of my mind. If anyone can clear them up for me that would be greatly appreciated. Blind faith in management is starting to wear thin as I have spoken to Dale, IR, Hugh and the lot. I agree great guys, down to earth, and all those other things that make us feel warm and fuzzy.