Share Price---Doesn't Really Matter
posted on
Sep 29, 2011 01:39PM
Keep in mind, the opinions on this site are for the most part speculation and are not necessarily the opinions of the company WITHOUT PREJUDICE
After a considerable amount of reading / posting / opinions and thinking, I have come to the conclusion that---THE SHARE PRICE JUST DOES NOT MATTER ANY MORE. !!
WHY ??? would be a fair question--- and I will try to give an opinion that I believe justifies my statement.
Resource Play vs Share Play. Let me explain the obvious difference. It may clear the fog for some of you, and will also be obvious already for others.
If Lori recommends the acceptance of a resource settlement, and the majority of us shareholders agree to her recommendation to accept ---we will probably only sell off the Proven Tesoro resource of 5000 acres, NOT the balance of the claim, which is 12,000 acres.
Now, we would receive a royalty for the resource, and KEEP our shares to carry on business with. No--- you are not selling your shares at all. Just collecting a royalty for every share you own.
If you sell your shares before that on a share price increase or decrease, you will not have them around to collect the royalty on.
EXAMPLE ONLY. If we recieve $100 per share for a royalty on the 5000 proven acres of the Tesoro---and we get to keep the rest of the Tesoro to sell to someone else, this is how it works for various amounts of shares---
If you only own 1 share in SLI then 1 share royalty = $100 ( you keep your share)
If you own 100 shares in SLI then 100 shares royalty = $10,000 (you keep your shares)
If you own 1000 shares then 1000 shares royalty = $100,000 ( you keep your shares)
If you own 10,000 shares then 10,000 shares royalty = $1000,000 (you keep your shares)
You can do the rest of the math for yourself---, but the important thing to remember here is this----you will probably still own your shares and we can do this several more times just on the Tersoro property if the trench and drill results come in where we hope they will come in at.
How do you become a Millionaire with this scenario--just spend $20,000 dollars on SLI shares @ $2 dollars each---that will get you 10,000 shares ---and wait for the DUCK to QUACK.
But only do it if in fact you can afford to lose it CUZ SLI is a venture stock, and anything is possible. Hell, it could be a mosquito quacking like a DUCK for all I know.
I for one am willing to bet against that, but as someone said before WTF do I know.!!!
All Aboard!!!!!!
Rinky