"Based on the general tone of the resource sector and the Company's ongoing pursuit to rationalize its corporate expenditures, the Company has decided to delist its Shares from the NYSE MKT."
What a bunch of BS!
I actually bought 50K shares yesterday and I sold that 50K today faster than you can say "I hope Neil voluntarily resigns from CGR". A VERY short sighted move and a VERY troubling one at that.
How much money will CGR/CRJ save on this action? My best guess is about 1/3 of Neil's salary. This then begs to question "Why such a drastic action?". Think about that. Is CGR/CRJ that deep in trouble financially?
The last PP CRJ/CGR undertook was for $50M (or thereabouts). Neil spent that money like a drunken sailor. Although the bulk of the same was well invested back into Seabee, $12M or so of that PP would have been better allocated if set aside to take out the debentures instead of new debt. Today, that debt and a fall in gold prices has the entire Seabee operation at risk. Total INCOMPETENCE. Going forward, and should the current PM environment continue and or even worsen, the only thing that will save CGR/CRJ is the SHAREHOLDER.
Neil might pat himself on the back as to having survived tougher times gold price wise, but how did he do it? He did it by one PP after another and DELISTMENT is how he pays back those very same shareholders.
EQUITY has been CRJ/CGR's saving grace since day one. Instead of voluntarily delisting the shares from AMEX, costs can be lowered by undertaking a share consolidation (ie: AMEX schedule of listing dues and fees). Yeah, something like a 4 to 1 consolidation sucks for the shareholder, but so does delistment. With a share consolidation and continued listing on the AMEX, however, CRJ/CGR is at least in a position to bail itself out "once again" via the SHAREHOLDER and those things called a "PRIVATE PLACEMENT".
To close, "management incompetence" is the Company's worst enemy. NOT the price of gold.
The market obviously agrees with you and not with me. I look at this as either a total non-issue or even a positive for CGR since it will reduce expenses and likely even headcount by 1 or 2 people. I added shares today and will hang in there until it is either zero or much higher than current price.
Will shareholder liquidity be impacted? I doubt it, but even if it is, that isn't even a bad thing for a penny stock since it keeps some of the flippers at bay.
Those of you believing gold prices are heading higher anytime soon are also delusional. It is easy to see gold at half of today's stupid high price. Will CGR survive gold at $600 or $700? Of course, as will most others.
This is a balance sheet play and a bit of a hedge against many other stocks, nothing more, nothing less.
I admit, the more I type, the more obvious it is that I know next to nothing about the mining business. That said, I am an advocate for buying low and selling high.....that's why I love these sectors right now: coal miners, gold miners, mall retailers, some banks, some utilities.
Cheers All....tomorrow will be better.....though I wish Omama would stand firm and keep the government shut down and not raise the debt ceiling. Rock on.
uptab....look, I dont believe gold is going down to six or seven hundred, but if it did, CGR might not look so good as a balance sheet play. They'd probably have to write off a ton of their in the ground assets.....not just based on the the simple decrease in the POG, but getting most of it out of the ground would become unfeasible, so that gets written off. I'm no expert, but just by the historical shareprice, lack of outside interest, and lack of insider buying....seems many investors have doubts as to the validity of CGR's own resource estimates and thus the validity of the high book value.