Your stock is your currancy... that is fundemental to the success of any company and in particular a jr. The success of the company and the investor depend on that currancy have the preception of value.
This is so fundemental it defys any comment, but I will make some anyway.
Profits are a means to an end. Those profits are the property of shareholders and should be used to build strength in the company.... that strength, is like a country. Just as a country relys on having a currancy of intrinsic value to buy and build for the future so should a company. The stock is the currancy of any company... and purchases, should be done using that currancy.... not cash unless you are awash in cash..... and ... and your stock is fully priced.
HBM is not in that position.... although they do have a wack of cash their share price is in the toilet. What needs to be done is to build the value in the companies currancy and look for deals for future production using that currancy.
There should be implementation of a divy to HBM shareholders which would make HBM a divy paying stock and that would drive the stock price up.... heck HBM is trading at 1/2 of SGR's share price when you strip out cash and HBM has been profitable for a very long time.
On the WEL front.... the currancy is similar to Argentina debt crisis of 1980.... WEL has experienced a crisis of it's own.... few are willing to hold it's paper in spite of the promise of significant potential in a primier area.
John has to address the currency crisis, and fix it. This is the way to success get your currency fixed, so that you can move forward. The financing at .05 had come home to roost and punting the wts was not the way to fix that problem... it was a solution if efforts were made to get those wts exercised. Had an incentive program been introduced, the wt price reduced and proactive moves been made to us investors ..... then WEL would not be experiencing this debt crisis brought on by a lack of confidence and frustration. A share consolidation would also have helped with future funding requirements and would have reduced the precieved overhang. I figure a 3 for 1 would have worked very nicely.
HLO is going through the same situation... they sold their sole to the Mineralfields devil and now they are eating all that Flow through .05 paper..... but beyond that they have advanced projects.... Fixing their currency is relatively easy... consolidate 1 for 5 and the float drops back to > 40 million and the wts overhang is reduced to 10 MM at 5 times the price... Soon those wts would be @ .50 and potentially provide 5 MM in cash at a respectable share price.
HLO would be poised for success if this is done.... FD float only about 50 MM
Both of these Jr cases would aquire more investor intrest with a reduced float and smaller overhang.
CAA is in a very different position..... very high currancy value.... and robust but not awash in cash... Just think if they took over VMS, HLO and RCR they would be sitting on about 30 MM in cash and multiple advanced projects with their sugar daddy, paying their $3,000,000 quartery 6 2/3 % intrest divy HBM.
Am I stupid or what?
JMHO
