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Ashanti Goldfields Co. (ASL) Message Board

  • Jademann Jademann Mar 1, 2000 11:57 AM Flag

    what the f has happened to ASL

    Been on holiday expecting to see it still around 2 7/8 to 3 1/8.

    Has there been some real bad news?

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    • Welcome back Jademan -

      Absolutely nothing
      has been happening (publicly) on the Ashanti front
      for the last 10 days or so.

      Before that
      Asahnti repriced the warrants from $4.75 to $3
      essentially putting a $3 ceiling on the stock price for the
      foreseeable future. Ashanti got and has drawn on a $100 MM
      loan to complete Geita. The terms of the loan strongly
      favor Ashanti selling 1/2 of Geita before the fall.
      They have announced new members and a restructuring of
      the board of directors.

      Volume has been down
      and the price drifts down. My take is that most
      investors have given up and either have sold out or have
      decided to wait and see and will come back to the stock
      in a few months.

      In Ghana the stock exchange
      has dried up. Total daily volume in all stocks runs
      about US$3,000 (not a typo!). The cedi (Ghanaian)
      currency is dropping against the dollar. About 3500 cedi =
      1 US$ A year ago it was about 2400 cedi = 1

      IMO the repricing of the warrants took shareholder
      interest out of this stock. This board has drifted onto
      other topics - I think while stockholders wait for
      something to discuss regarding Ashanti. I believe that
      stockholders are disgusted with the outcome of events and have
      moved on to other opportunities.

      The price of
      gold has calmed down and is in a general downward
      slide - $293 / oz.

      All - in - all not a pretty
      picture for Ashanti and the stock price drifts downward
      as a reflection.

      It just might be possible
      that no amount of glue could repair this


      • 2 Replies to kmsdad
      • Could hostiles be accumulating their 5% stakes?
        Or are rules different in Africa?

        Do wish you
        guys would settle that Geita sale/jv already. Big help
        for the sector, once it's done.

        Handy, thank
        you for greeting.

        Maddie, only reason I don't
        have some Ashanti is portfolio diversity. Feel
        satisfied with my picks in the sector and no need to
        switch. But I WOULD pick up some Ashanti

        Re your comment re CBJ: I have no need whatsoever to
        pump it or tout it. It's not for the impatient. But
        for the very patient, almost sure big profits.
        Caisse, its biggest holder, still - after averaging down
        - has a par over 5, I've heard. (Not an insider, so
        can't confirm exact par.) Insiders also have a big
        chunk. My par is way, way, way below theirs - so I feel
        I'm in very good shape. I'll wait YEARS if necessary,
        for a quadruple, quintuple or more from my par.

      • Looking at the trading from a chartists point of
        view I think most potential ASL longs are on the fence
        looking for the first sgn that the decline in the ASL
        stock price is turning around.

        Its a constant
        decline of about an $1/8 each day. When this decline
        stops buyers will appear IMHO but where is this bottom?
        could be today or at 1 7/8 or in between.