Re: PPS
posted on
Feb 07, 2008 06:11AM
Kondiah....welcome aboard. I don't think there is much Fung and Thompson can do as far as share price is concerned. Say what you will about the financing and who knows who...it's just the cost of doing business (apparantly) in the junior mining business. The good news is that we GOT the financing. It is my opinion that the hedgies are doing what they do with the share price to maximize their own profits. I suppose that is the natural order of things. I believe that the retail investors WILL make money when the permit comes. The problem is that this is taking longer than anyone anticipated. So we have a situation of uncertainty...and we all know how the market feels about uncertainty...especially someplace like Venezuela. So the uncertainty related to the permit delay gets translated into amplified rumors of legal problems with Vanessa, corrupt management, confiscation from the Vz government...etc., etc. In my opinion it all boils down to PATIENCE. If you believe in the facts as stated to date (and not in the growing amplitude of the rumor mill) then simply holding your shares in an environment of rising gold prices, given the value of the underlying asset and need for reserves by the majors of the world, would seem to make sense. It is a waiting game. It appears, however, that the plan for revamping of the mining sector is being implemented as we speak. That is a good thing. The fact that we have to suffer the indignity of being repeatedly gang raped by hedge funds and the big money players is a bad thing. PATIENCE AND GOOD LUCK!