Re: 5000 acres - valuation
posted on
Jan 20, 2012 10:06AM
Doesn't the fact that the company has only explored a tiny fraction of the property highlight the issue raised by some here that the valuation of the company relative to its stage of development is a bit aggressive? And further highlight the critical need of management to communicate the information begged for so many times in this and other forums such as location of holes, drill plan, etc?
Looking back over the trading it looks like a select few were privy to the results and sold prior to the masses to reflect a more realistic valuation given the results and stage of development. Now the market is trying to find equilibrium but for that to occur the company must communicate information that allows investors to make objective estimates of valuation.
That doesn't mean the company does not have a world class deposit, it just means at this stage they haven't demonstrated those facts although they have released several bits of info that lend at least some credibility to that theory. That's why it is still trading at a $115mm valuation vs a $20mm.
There are those who fall in love with a CEO, company, directors etc and if that works for them that's great as that type of investor is critically needed. But having investors whose only love is money, who ask critical questions, and who cuss cajole and encourage management to provide foundational information justifying valuation objectives isn't a bad thing either.
Just my opinion.