Re: Dividend or Dilution
in response to
by
posted on
Dec 29, 2011 01:17PM
San Gold Corporation - one of Canada's most exciting new exploration companies and gold producers.
I would have agreed with you a month ago but I don't see how exploration in the future and hopefully the announcement of good results will raise the share price. Last week we saw an announcement that said "biggest gold find in Manitoba's history" and it didn't have a lasting impact on share price. With continued exploration we can't expect announcements like this very often or if at all in the future. So why would the share price rise with announcements less spectacular than the last on when the last one didn't have much of an effect?
I ask these questions because I want to get a handle on what San Gold should be doing in the future. My suggestion of switching the focus to production and eventual dividend does not seem to be what this board thinks is a reasonable course at this time. If I see a consensus from this board and I see San Gold following that consensus then I am encouraged to stay with the company.
If the answer is no more dilution, make money and use it to expand the resource and San does this then I stay, provided it looks like the share price rises with the success of this strategy. I want to be with San for the end story I just hope it is a good one.
I am just trying to figure out what course of action I should be seeing from this company in order to stay invested. My original question was why the focus on the price of gold has not been answered. I want a reason to stay with San Gold other than gold is going to break out. That will float all boats, is there anything special about San over a hundred others? That is why I am trying to figure out what San Gold should be doing to break herself from the pack.
By the way I usually set a goal for a stock and get out at that time regardless if I risk missing out on more gains. I broke this rule with San because I thought we would see $8 to $10. I am now trying to figure out a target price and a time frame. Any ideas?