Re: Level 2: 99 cents
in response to
by
posted on
Dec 11, 2012 03:42PM
CUU own 25% Schaft Creek: proven/probable min. reserves/940.8m tonnes = 0.27% copper, 0.19 g/t gold, 0.018% moly and 1.72 g/t silver containing: 5.6b lbs copper, 5.8m ounces gold, 363.5m lbs moly and 51.7m ounces silver; (Recoverable CuEq 0.46%)
Devils advocate. Worst case.
They have about 7 trading days so the price could end up at 78 cents by then. If you think people are hollering now just wait a few days. Some tech indicators suggest a big buy but the supports just not there. If the price holds for another day a buyer might gain a bit of confidence. If it doesn't hold it will get really ugly and it will not recover. We are already in the danger zone where the retail will become convinced that the BFS is a bust. Then we'll be locked into big losses to try exit or hold for another 4 months. During this time there will be no volume. It'll be a ghost town. The only buyers will be the directors. This isn't the first time a stock failed with a good study in hand. If we stay below a buck you can bet Teck will lowball. The directors know this but their buying will be met by people unloading because they expect Teck to take 20% and when you've ruined your stocks reputation you have to go to equity for money. That takes more value away from shares. So it will be interesting to see how the co will break this cycle. The people who would like to see the sp move up will not buy if the sp continues down. That will leave just the directors.
If we have 40 million shares floating there'd be some substance to the sp's movements. Since we don't, there nadda to trade. As I said before, no big players are coming because they will want millions and can't get them. Add a plumeting sp and no one is coming to the rescue. So we could be looking at the beginning of May and if Teck walks with little there will be a very long battle uphill to make this happen. I'd give it a year. With say, 80% of the deposit we should be able to turn a good profit provided there's a world to sell copper to. I think we could get really lucky and the sale price could astound us under these conditions. It would take a very long time but that is the reality. The biggest problem would be remaining a public company. After the sp gets driven into the ground we'd be at risk of going private. And no, the sp will not respond positively to any of these conditions.