Re: Getting Along
in response to
by
posted on
Jan 11, 2010 11:46AM
San Gold Corporation - one of Canada's most exciting new exploration companies and gold producers.
Just catching up on the weekend's posts, and a lot of interesting comments on both sides. Always appreciate your insight HM, as it is a few posters like yourself that help fill the knowledge gaps from the mining standpoint for those of us with little or no experience.
My take is that what is perceived as complaining by some of the posters here is not so much that, as it is trying to understand the company's strategy in regards to share price, as it sometimes appears conflicting.
HM made comments essentially saying that the company's main interest is to boost value for current shareholders who are in it for the long run and see the huge potential in this area. I buy that, but if that is the case, then why does Dale need to go on world tours to pull in new & institutional investors, and wouldn't a TSX listing be an excellent tool for him in these meetings?
Dale has also made the case that releasing a 43-101 too soon could reduce share price if expectations are not met. Again I agree, but as time goes on, expectations continue to increase accordingly with new drill results. I think that most shareholders here are willing to live with that potential pullback if it will give us that TSX listing, as everyone seems to believe that ultimately the ounces will come.
I have some concern that, based on the posts here, a lot of investors are waiting for a price spike following the 43-101/TSX listing to dump their shares, but if that happens it will just be a minor setback in the long run. I admit I will probably lighten up a bit then, as my portfolio is probably overweight with SGR, but my uneasiness for that is because of uncertainty of where gold prices will go rather than the resource here.
From a takeover perspective, I imagine it must be a tough balancing act to keep share price high enough to make a purchase difficult while not laying all your cards on the table resource-wise so the company is able to get full value for what's in the ground. However, as it stands now, I think any company able to take over probably has enough info to get a good understanding of the geology without the 43-101, and at this point as a venture company I don't know if San has enough credibility to pull in institutional investors required to help drive up the share price if that day does come. Here's hoping that Dale's tours have lined up institutions to step in if that occurs.
All in all, I trust the company to be much more knowledgeable than I am in marketing itself. I typically avoid venture exchange companies, as I know there are a lot of shady ones out there, but my DD along with some good advice has made me a big believer here, despite the information gaps. Unfortunately there are a lot of investors out there that aren't so "lucky" and missing this opportunity.