Whaler,

We all know the numbers; $26M in liquid, or near liquid assets, $27M in properties where Langmuir represents $17M of that investment and $10M in the balance of the holdings. $53M in all assets into 72.4M shares equates to approximately $0.72/share (as of Feb '10 Financial Statements). Reality -- shares are trading in the 30 to 40 cent range. If we take the value of the liquid, or near liquid assets at $26M (including the undisclosed $6M loan), divided by 72.4M shares equals 36 cents per share. I have done this breakdown in the past and have always asked why is the market price per share less than the money in the bank. Heck, ISM is making at least $1.5M per year for keeping those assets invested which is approximately 2 cents per share. So, how is it that ISM is trading at these levels?

IMHO, there is a lack of confidence in ISM management. In the sequence of events over the past month, I believe that ISM management also believe that the market has valued their property holdings at nil, or close to nil. This is further supported by the trading value of ISM as of market close last Wednesday when Langmuir, in everyone's mind, was no longer an ISM asset. This was the reason for the proposed spinoff of Langmuir, and quoting ISM managment that they were going to pursue Gold and MoS2 interests in their other properties.

IMHO, ISM share prices at these levels has rattled ISM management and they seem almost desperate to increase shareholder value. Recall from the ISM financial statements that ISM likes to purchase the services they require with a combination of cash and shares. ISM share prices at these levels make it more difficult to do that and result in a "faster" dilution of the existing shareholders, including Randy Miller. In reading into the events over the past month what I did find interesting is that ISM seemed to have no problem parting with their equity positions in Jasper and Langmuir without looking for significant return for ISM itself. This is certainly interesting to me, as ISM has no significant cash flow other than return on its investments, and their future existence is dependent upon a return from such holdings to continue exploration activities.

From the last MD&A, I would expect that we should be seeing some drilling results from the other properties soon. Preliminary results may have factored into spinning these interests off with minimal return to ISM itself. Time will tell. Given the strong financial position of ISM, and how conservative they are with their liquid, or near liquid, assets, I believe it is a matter of time before ISM scores a significant discovery.

aatozz

P.S. Patience is a virtue. You certainly need it to hold ISM shares.