Pros and Cons of these delays
posted on
Jun 03, 2008 07:25AM
(PRESS PROFILE TAB FOR FACT SHEET & UPDATES)
I agree with some of these recent posts that argue that the delays have run as long as can be tolerated. I agree that the TDC website and IR in general are very poor. I still hope that there are good reasons for these delays, and that once we get past this pain it will prove to have been a prudent move by DW. There are a couple of positives, on the other hand, that we should keep in mind. First of all, the long period we've gone through was not unique to TDC, but a weak junior sector. It's changing for the sector, so we can raise our expectations for SP performance. But also, during this long lull, there have been a lot of warrants and options that expired and died because the SP was lower than the strike price. I know that Dr Webb had some expire at 0.50 while the SP was below 0.50, for example. The much feared share dillution would occur if financing is attempted by issue of equity at a low share price. This would be hurtful to the major players/holders, including the key insiders.
On the other hand, if delays in publishign resource and the PA result in BETTER timing, better financing, and less dultion (presuming that the environment for juniors is better in July/August/Sept than in April/May, then all of these delays will have proven advantageous for both the long holders, and the near-term investors.
Food for thought.
SKELEG