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Message: Re: Carpe DM Stocks SFMI dtd 18 Dec 20122

Watching SFMI progress is like watching grass grow...or a snail cross the sidewalk.

No question, we are a year behind and more dilution will occur. As far as the BOD, if fairs better to pay yourself in shares for the simple reason of taxes.

You hear about CEO saying I will only pay myself $1.00 a year and then load up on stock options. Simple math...either pay 36% personal income tax or pay 15% in capital gain tax.

However, under Obscure taxes.... Capital gain tax rate goes up to 25% and dividend tax to 44%. No question this will harm the middle class because they rely on dividends as supplement income. Bank CD's are non existent because banks are getting federal money with 0% interest rate.

Obama is seeking raising taxes on people making 250k a yr ( 39%) and Boehner countered with people making $ 1 million a year. Obama wants to continue to raise the debt ceiling the next two years meaning we could see our national debt hit $2 trillion dollars. Does this mean Gold will hit $2000 and ounce? Does this mean the value of the dollar shrinks as of recently the Federal Reserve implemented QE4? Will there be a QE 5? QE 6?

Bottomline...anyone with common sense understands it benefits the CEO and BOD to pay themselves in shares because it benefits them in the long run because of the tax burden. SFMI/GHDC must be successful or we all lose......it is clearly obvious to me...if I was the CEO, I wouldn't be happy about the share price, however, I am doing my best to get the operation fully operational so I benefit with investor approval and buying of stocks. Mistakes will happen..we are all human. Even Joe Montana, the greatest QB threw interceptions.

That's my take today....WHERE ARE THE DRILLS?

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