I am curious... after diluting the stock to raise capital multiple times, getting large chunks of institutional investment, and being a gold mine that brings in about 10 million a month in gold right now... on what grounds can you explain why they stated a need to raise more capital to fix the problems at Namoya and Twangiza? How bad is management that in a recent update stated that they needed to raise more capital from large institutional investors? For those of you who don't know... THAT is code for new dilutions and stock issuances... for them to carry on... at all. I ask again... just how incompetent / criminal is this current Banro management.
Sentiment: Strong Sell
I seriously doubt any members of the board of directors needs to ever work again. Personally, I don't think they care if this goes bankrupt or not. They will be just fine, financially.
Gold is 1300 an ounce, and Banro is losing money. No earnings... just more losses. Way to go, Banro. And in their update, they stated they are seeking FUNDS to fix the problems at Namoya. Way to go, Banro. If you were an institution, would you give money to BAA to fix problems in the middle of the African continent for a company incorporated in Canada? For all we know, the directors are privately selling half the gold mined at Namoya and pocketing the cash.
HERES an EXCERPT FROM THE PAID BASHER HANDBOOK, A MUST READ
The Basher's Handbook
Posted in part here as a service to those who doubt this actually exists, or is simply an unfounded urban legend.
Lesson 1: Remember, BASHERS NEVER Bash A BAD STOCK. Check the boards for stocks with no potential. They never have any Bashers. Bashers only go after stocks that are moving up or have excellent potential to do so. Bashers work to bring the price down to either increase their position at the expense of others or help a Short make their bones.
Lesson 2: BASHERS ALWAYS BRING UP OLD NEWS THAT YOU HAVE HEARD MANY TIMES. New start-up companies always have a few bits of bad news. The Basher will post this over and over again. Unsophisticated Bashers will try to freshen up old news with a new date or by-line in an attempt to fool you.
Lesson 3: BASHERS POST MANY TIMES A DAY. They try to wear you out. They comment on everything, every other post, and can answer every question. THEY KNOW IT ALL! There is no positive comment they won't Bash. They try to control the board. True longs may have to confront the Bashers or they will appear to the newbies as being the people with all the information. This is best accomplished by posting positive, well researched data on the company, repetitively, while trying hard not to engage the Bashers in direct repartee. REMEMBER - LONGS... RESIST USING THE BASHERS ALIAS!
Institutions have been accumulating. LIE LIE LIE Institutions have been dumping. They are probably down to 20% ownership if that. LIE LIE LIE
if the assets were a billion dollars... THAT WOULD SHOW UP IN ASSETS AND BOOK VALUE... AND it's NOT there. LIE LIE LIE Assets are worth MAYBE a couple hundred million.
Two mines in production. LIE LIE LIE ONE mine is in production. The other mine is turning out 1/20th what Twangiza is turning out. It's open ONLY for show to shareholders.
The surveyed unimproved unmined property is worth something... but good luck selling land in the middle of Africa. Also THIS property is part of assets, and shows up in book value... and it's NOT all that much. So... paying off 275 mm in debt with two African land tracts... very doubtful. LIE LIE LIE
"This thing is ready to run". Really? LIE LIE LIE This thing needs more money to correct the boneheaded idiotic mistakes the current board of directors made. And BANRO is already as they have said talking to institutions to try to raise more money. They still don't have enough money, despite it being a gold mine. I have a feeling my nephew could run this company better.
The market makers do NOT take orders from the institutions. That is stock manipulation and it is illegal. LIE
I know... really! It's like people on the Titanic buying more tickets for the cruise when it's already taking on water. The big investors have left the building. What more do we need to see? Yesterday's fall was NOT caused by retail investors selling or shorts. Yesterday's fall was ALL about large institutions getting the hell out of this stock.
TRY 40 percent institutional... and that was before this week. Today they probably lost half of that. Fidelity investment stats. See,, it's lying #$%$ that keep me from being silent. This girl wants truth... and the truth is out there... if she knew where to find the facts. You sir, are a paid pumper for the company spewing lies and exaggerations. What you have here is a black hole, ready to suck in all the money you can pour into it, never to see it again. Isn't that more like it, baa undervalued? Hmmmm?
WHERE do you get 1 billion in assets? Book is 1.94 a share for 250 mm shares. Then take the 500 million in assets per book and subtract the 200 million in debt... 43 percent debt to equity. They are turning out about 28 million in a quarter... this past quarter. They are paying ongoing expenses and salaries... the statistics from Fidelity are : 80,000 revenue / employee per year vs AVERAGE INDUSTRY $1,411,000 per employee industry average for TTM. They don't have a billion in assets. What they have is less than 300 mm in assets, with ONE real mine operating and a second MODEL mine that is on impulse power... not warp engines. At 1300 dollars average RECEIVED CASH per OUNCE of gold sold, they are still LOSING 1 cent a share with Aggressive accounting principles... as per Fidelity rating again. Snapshot of BAA on Fidelity. Go look it up.
What in God's name would give you ANY thought at all that this stock will "pop" next week? They just released a disappointing update in which they admitted the two mines are woefully engineered and we are now at this time losing a penny a share while turning out about 30 million dollars of gold ore a quarter. They are in the middle of Africa with monsoons and civil wars, etc etc etc. They have one decently functioning mine, but the debt load is high and they are talking about raising more capital... RAISING MORE CAPITAL from principal larger investors. My God, woman... on WHAT do you base your investment decisions? It's a gold mine in the middle of nowhere that was badly designed and they need more money to operate it correctly and upgrade it. The directors, meantime, were just reelected into their offices by brain dead investors who proxied themselves into what must be some of the dumbest gold miners on the planet. But, you go ahead and take your 401K and plunk it in right here and tell all your girlfriends that YOU... own a gold mine. Welcome aboard.
How could a gold mining company NOT have the right equipment / right sized equipment to mine gold? Namoya is disturbing. It sounds like a total failure waiting to happen. I was expecting a lot more gold output than 1500 ounces a quarter. To be taken by surprise about the type of dirt and rocks they are sifting through and the equipment it will take to mine the gold... is disturbing. It raises big questions about experience, competence, oversight on the mines. Who was to blame for the bad engineering of the mine? Who made the plans? Obviously the board of directors were in control of every detail of that mine. The small increase down the road in the mines raises the question... can or will it ever be POSSIBLE for this company to be profitable? The new additions to Twangiza sound like bad design... oversights in engineering. Sloppy planning and management. Those are the things that ought to keep investors up at night. Not to mention... the price of gold MUST stay north of 1300 a share if they have any hope of making anyone any money. I wonder if in the beginning they said... "oh #$%$... it's a gold mine. We will have more than enough money from operations to pay for anything. Just build the damn thing, and we will all be rich." I have that feeling they don't know what the #$%$ they are doing.
not as long as the stock does a cliff diving act. The lack of confidence in this company is paradigm. Zero is always a possibility... so... NO!
That is the only explanation for cratering 30 percent. Franklin? Tradewinds? A combination? All possible. I believe one of the top holders pulled the plug after the disappointing update on the mines. We will see the 13G form coming out to spell it all out. Plus a lot of shorts piled on ... even this afternoon... one block traded on the bid was 100,000 shares. Panic and desperation selling widespread by investors and institutions. We really did NOT need an election. Today is pretty much a vote of NO CONFIDENCE in the management... who at times forget you are the owners... and they work for you. That is always a bad sign... when management ceases to serve you and demands that you serve them. Like a spoiled king wanting more champagne and concubines. All the while the peasants starve in the streets and beg for food. Banro execs deserve what is coming to them.
I quote from the hired basher manual... none of it is my original writing. Various pro stock websites have it posted for free distribution and download. Google it. It may even be for sale on Amazon or somewhere in softcover. There is one large pharma and one tech software company on the web that have taught this in full to their execs. What I quoted is partial... the full download is ten typed pages long. There is much more to it than the few points I listed. As you read it... laugh along with me at bashers you know... and can now spot around your stock message boards.
Lesson 4: BASHERS WILL LIE TO YOUR FACE. Never trust a Basher. The truth on start-up companies is that they make mistakes. What new company hasn't?
Lesson 5: Bashers know YOU CAN'T VERIFY THEIR STATEMENTS. That's why they make the vague statements they do. They rely on you being to lazy to research their droppings other than to scan the board for others opinions.
Lesson 6: The Bashers PLAY ON YOUR LACK OF KNOWLEDGE.
Lesson 7: Bashers play on your lack of patience. You have held a stock for a while. You knew it will be a big stock someday, but the BASHER CAN GET TO YOU BECAUSE YOU ARE TIRED OF WAITING FOR YOUR GAIN.
Lesson 8: BRING THE PRICE DOWN. That is the Basher's job. The truth is not important. Lies are the norm. Post continuously on the board every day. They are trying to scare the newbies that are just investigating a stock. They are trying to wear down the faithful longs on the board and gain free reign and control.
Grade 'D' Basher:
Needs to learn the basics about being convincing when making a negative statement. Spends a good amount of time working the stock, maybe 20 hours a week.
Sentiment: Strong Buy
And still they voted the blue ticket... or gave their proxy to the BOD of BAA.
I am not sure who wants to buy it cheap... but it is looking almost as if this was planned. Indeed, someone could bankrupt this company, and then buy it out for pennies on the share. I would suspect one of the institutional holders. The executives are not showing owning anything. That is, I suspect due to the overall course of things that indeed, someone IS after sucking this company up... but making it go through bankruptcy first gets rid of all debts, most of the pesky shareholders, and allows someone to set up a sanely cost budgeted company that could exploit the gold on sight. But, thanks to all the shareholders over the years who funded all of this, only to get nothing out of it. Canada at its worst. Expect investigations and lawsuits.
Do you really need an answer to that question? The question is not can it get back to 55 cents soon... the question is can it get back to 55 cents... ever.