It looks like HOCH's lockup period ends tomorrow. Based on my numbers, we could see 4,000,000 + million shares registered before the end of the week.
This will make things very interesting, as HOCH just announced a large acquisition and listed GORO as liquid funds. The only way to get liquid funds is to Register Shares.
The question is whether we will see volatility like on 7/11/2013.
It sounds lik you are digging quite deep into GORO's financial's ect.. Could you share your insights into the risks that GORO faces at this point? Additionally, how sustainable is the $0.36 per share dividend?
My take is that it would be hard for much to go wrong with GORO at this point for the following reasons:
The company has no signficant debt.
The share price as dropped 80% from its peak, and production is currently greater now that at its peak valuation
It is my opinion there there is a floor under gold and silver prices at roughly the current levels.
The company appear committed to paying out 1/3 or annual gross profts from mining.
With all of the problems GORO went through bringing its mine into production, and now with a few years of history at the current production level, it would seem like they have ironned out many of the bugs in its systems.
"The company has no signficant debt."
SORO is bleeding cash every quarter
"The share price as dropped 80% from its peak, and production is currently greater now that at its peak valuation"
Is this a new metric that I've never heard of? Is it really that simple? PM price collapse/sky rocketing costs//Inept management/cash burn/exodus of founders etc etc..... Another dupe who believes a lower price=cheap
"It is my opinion there there is a floor under gold and silver prices at roughly the current levels."
Why? A tingle down your leg?
"The company appear committed to paying out 1/3 or annual gross profts from mining."
How does your formula handle consecutive quarterly losses? Just keep using treasury cash to pay the dividend...like they do now?
"With all of the problems GORO went through bringing its mine into production, and now with a few years of history at the current production level, it would seem like they have ironned out many of the bugs in its systems. "
What has been ironed out? Yearly water issue shuts down operation/stolen concentrate shipments/local opposition/exodus of management/CEO has zero qualifications
SORO's biggest problem is that they are running through the resource but not making any money. These type of stocks end up on the pink sheets.
Hoch was restricted in the number of shares it can register and sell via their agreement with GORO. The next trading window for HOCH starts tomorrow, in which they can register their shares. There is a volume calculation that puts the number of shares available for registration, I believe, in the area of a little over 4.1 million shares.
I think much of the selling volume is in anticipation of this event, and in fact, there have been articles in UK papers that specifically mention this "short" as a "no brainer".
That said, HOCH may not wish to Register the shares. Further, if they Register their shares, there is no requirement that they sell them. My thought is, because HOCH stated GORO was a "liquid investment", they plan on registering the shares.
You are not educating me...you are stating semantics. You are correct, GORO needs to remove the "restriction" from their shares in order for HOCH to sell. However, the restriction exists due to the contractual agreement between the companies and that window opens tomorrow, in which, HOCH could register their share after the restriction is removed and sell them in the open market.
On July 11, 2013, they did the exact same thing and the point of my posting was the 90 day window just "reopened". As of tomorrow, 4.1 million shares could hit the market, if HOCH chooses. Your can argue semantics all you want, but the point is that much of the downward pressure, of late, is probably people who also knows the window opens tomorrow.
Get over the semantics and focus on the point. You would #$%$ off a lot fewer people.
"" Hoch was restricted in the number of shares it can register and sell via their agreement with GORO. ""
Hoch can't register any shares at all. Only GORO can register Hoch's shares. Why is it always my responsibility to educate you?
"" The next trading window for HOCH starts tomorrow, in which they can register their shares. ""
Again, as always, you don't know what you're talking about. Hoch can't register any of their own shares. GORO must register Hoch's shares.
Are you trying to say that Hoch can sell more unregistered shares tomorrow?
"" It looks like HOCH's lockup period ends tomorrow. ""
What lock-up period? And what does a lock-up period have to do with GORO removing HOCH's restricted legend on their stock certs? Are you definitively claiming that such legend removal is occurring? Are you claiming that HOCH will soon be able to dump all of their shares into the market without any volume restrictions?
Refund! GORO, US Gold and the Reids have done me just fine. My cost is $.25 and have protected myself with deep in the money calls whenever times get questionable, such as this.
What I am amazed is how much you and KEEP spend bashing this one stock. It is truly amazing the time you spend here, and it makes me and many others wonder what job affords you the time to spend so much time on boards such as this?
To do what you do daily, you must get paid to bash; or you just have such a personal vendetta that you cannot let things go.
You and Keep have called the Reids every name in the book, including Fraudsters, which a judge disagreed with you by dismissing the case "with PREDJUDICE". Are the Reids perfect, NO. But they are honorable people. Are there things they could do better, YES. However, when you run companies, at times, you learn as you go and you make mistakes. The key is whether you learn from those mistakes or you continue to make them. It appears to me that the Reids have learned and their current EXEC team is highly qualified and motivated.
You have issues with Jason and his age and experience. There are a lot of CEO's out there of similar age that are excellent CEOs. In fact, most of them don't have industry experience, but instead have come from different industries and businesses. What makes them good is their understanding of people and their ability to build quality teams. Jason has built a quality team. If you read the experiences of the COO; lead GEO; and operations personnel, they are excellent resumes and experiences. It is these people that Jason put into place; not his father, Bill.