I mean come on why nobody want to corner the market right now?
commodity funds too heavily involved in oil and now they have to sell all positions. Even gold which really isn't in play to the downside. GLD had below average volume today and has risen sharply from friday capitulation low.
Costs coming down. More gold found. Analyst raised target price just yesterday. He is an expert not me. Gold down 1% and IAG down 20% more from 3. Clearly this is a great opportunity. I loaded at 2.60. Only stocks that are great buys fall this fast. It will settle back in the 3's. That is huge money!!! return.
Clearly the stocks have declined too much considering gold stocks always have option value on future spikes in gold prices. So when they fall 30% clearly they are good buys.
60 cents pre rights offering is more than an optimistic price. That would be 45 cents post rights offering. (each of the 3 rights would be worth 5 cents each getting to the 60 cents). 45 cents with pro forma 800 million shares outstanding is $360 million market cap. And more than RSH traded for when it had $300 million equity versus the current negative equity.
You can slow play me all you want. But we know it will likely be 40 cents on the restructuring or Bankrupt in January. They will need even more cash than what as already been raised next year so more dillutions probably coming.
Hold and don't look at it. And if gold for some reason go back to 1500 this stock will be $10+
Look what it said the proceeds were after fees. I don't understand why this company would need even more cash to be issueing more shares at such low price. This is not a good sign. Anyone have anything good to say. I like TSL but this is disgusting and makes me think management does not see much value in the shares even at these low prices.
Can the guys who got the 100 million shares as fee and the guys with the 300 million shares via convertible.....can they not short to lock in gains.. Clearly at 90 cents its dumb because there are now 800 million shares proforma at this price because all the rights holders will e in the money and participate. so the market cap is nearly $800 milllion at this closing price.
How it closed above 60 cents I can not fathom. I started the day short a bunch of shares and ended the day short more than double that amount. Shorting above $.90 on this deal was the easiest trade over my career. I will not cover any until 60 cents or less. Congrats to the longs that were able to not get killed today. I don't know how you did it with 400% dilution but good job.
They are offering above and hitting every bid.
Just to review, they stole 100 million additonal shares in fees. They are getting 300 million more shares at 40 cents assuming no bankruptcy. Then shareholders will certainly buy more shares with their rights offering if it stays above 40 cents. So pro forma shares outstanding are closer to 600 million. Soooo....anyone really think the market cap should have gone from $100 million to $540 million over the weekend??? LOL
Hmm. that is about 90% upside. Sounds good.
But then i can't believe someone actually payed a dollar premkt....i guess this proves people will throw money at anything.
We crunched the numbers all weekend and anything over 60 cents borders on the complete ludicrous.
at 90 cents with 500 million shares now minimum the market cap went up 4.5 fold over night.
Don't forget to add in ABX debt. Think thats how i got to the $300oz number. Have to look at common market cap plus debt.
same bankruptcy risks are on the table. Stock will trade 20-40 cents tomorrow if it even reopens on the NYSE depending on how angy the longs are and they will be angry and selling market out of disgust. They got $120 million but they probably have nearly burned that much since the last earnings report to the balance sheet is still just as bad. Seriously i wonder if this even reopens on the NYSE. The company is no longer controlled by the shareholders.