An irreverent look at Wall Street
what do you think the value of MGOL should be ?do you have a target for end of 2009 and for 2010? i know you mentioned this was a longer term bet.
Goldman is pimping oil again... any news on the Chinese companies that wanna back out of their oil "hedges"?
finally able to pick up some MGOL...it's weird...it's at $4.5 but it's ask is all over the place from 4.5 to like $8...why is that?
I think it's because there really wasn't any stock for sale, and that someone tried to raid the stock down
Hey Palmoni,Boy it was a crazy week for MGOL. I was able to double my position at almost half the entry price! I remember you saying that you had some maps of the properties and I was hoping you can post those up.As an aside, I found an interesting play in TMI. This is a blank check company that is in the process of acquiring a Chinese ad company and it is being put up to a shareholder vote. If the vote fails, the company liquidates at $7.8/share and if it passes then the warrants with a strike price of $5.50 and expiry date of 2011 becomes interesting since it trades at a deep discount. Recent management actions suggests they have the votes to acquire the company. Anyways, have a great weekend!
yea. Palmoni...are you able to show us anything with the MGOL maps? is that why you went to columbia for?
I'll post a map that also includes the geological results--I said I was going to do that a few weeks back, but I didn't do it because I needed to confirm if the property was in the shell or a different holding company that was being merged into it.You would of figured I would of been 100% sure of that before I bought into it-but now I know its ok.Yeh--I checked out a few of their areas, and went in the bottom of one of their mines, I'll post some pictures and also some of the areas surrounding the lands that they have the titles to, where major gold mining is going on.The pictures are of the acreage that surrounds the area on the map. You'll be able to see that they are all being developed, and its being done with the large companies--Thus if the maps indicate geological reserves, and they are mining in areas adjacent to it, you should be able to assume that the geological data that goes with the maps is correct.I made the bet that it was.Now I know they are doing geological work, so they can prove out the assets that they have. I think you would do that if you were doing a raise on the assets in the ground.So you can wait for the results when they release them, or head down there and try to get some info. I'm planning that route so I was trying to coordinate my trip with a few other guys and investors to have some fun, offset some costs, and to keep the trip safe.But I've heard big numbers being bandied about on a capital raise-- and I think someone must of heard that and automatically assumed it would be raised from the stock market, and shorted the stock because you have to be pretty seasoned to do it from the ground--Or have some very interested parties that have done some work on what is in the ground--at least that's how I see it. I'm going to check out that TMI-but at a football game so I have to quit!
Hey Palmoni,Thanks for taking the time to post all the information that you do! There is absolutely no chance for small fry investors like myself to get any of this information. I am wondering how did you come about MGOL?I’m assuming Paul Diaz doesn’t want to sell too much of his company away in order to raise the money and instead will just sell some of the reserves in the ground. You think a deal like selling 3 million ounces of reserves in a location to some high net worth investor or company for $300 oz is a fair estimate? That will net the company $900 million in cash to start operating without selling any stock. A deal like this will put the company on the map overnight.You think someone tried to short the stock because they heard news that the company will be doing a capital raise? That sounds crazy since the market for the shares is so illiquid and the potential for the company is huge, but than again I’ve seen some crazier things happen, hah.Oh BTW what football were you attending? I was at the USC game, but that game last week was painful to watch as a Trojans fan!
MGOL has so many separate claims, etc that I think they would do just one claim at a time. And probably, selling gold at a price of about $300-$400 is probably a really good estimate--you sell out a certain percentage of forward production for the upfront money which lets you develop other areas, and then they also pay you a cost for the gold--but you get the remaining percent because they only sell a small percentage to the investor. Barrick sold 25% of their production for the life of one of their silver mines, and the investor then pays $3.90 an ounce for silver.So I would guess that you start with something smaller, that their infrastructure could make work, and then do a much bigger deal after that.At least that's how I see it.
Post a Comment