Posting this only as I thought it was interesting to see Dan s thoughts back in 2011.
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dmbao Friday, 06/17/11 09:31:07 PM
Post # of 144430
The upside potential of this stock is earth shatteringly large. While I may be wrong I suspect that it will take some time still to realize that potential.
My opinions are based on my knowledge of the capital markets, discussions I have had over the past 3 plus years with management as well as the great due diligence that has been contributed to this board by many.
So I believe Scott has since the beginning understood that he controlled a property with so much potential that it being developed really isn't the issue it's more how and by who.
I believe Scott has had this understanding for more than a few years and has moved the project along enough to make this happen.
While certainly he feels the stock price should be higher and it would make his job easier he knows the end result is not 3 cents and it's not 23 cents but much much higher. So he has done virtually nothing to impact just the stock price, while not caring maybe an stretch not worrying is more accurate. Once the plan comes to fruition he knows this is worth dollars. So whether we are 4 cents, 23 cents or 37 cents is no concern of his as it meaningless in the long run. He isn't taking on this mammoth project to see the shares go up 300% or some trivial manner.
This view point has been very frustrating to us shareholders who sit here today excited about being up 10% on 500k shares. It's meaningnless. This stock for me is been painful to watch because with all the promise we just sit month after month after month, year after year. It's almost pathetic to be still at 4 cents. I expect this is all about to change over the next year and beyond.
So based on what I think I know I expect that some time soon (and it should have already happened so soon remains an unknown) a plan that has already been hatched will be shared with us regarding moving the niobium property to the next level. The gold property is small potatoes and while in 18 months or so it likely IMHO will be worth more than our entire market cap today it's trivial in comparison to the niobium property.
I expect that like the gold property the niobium property will be restructured and spun off to the shareholders via a far east stock exchange listing most likely Hong Kong.
While many hear believe this will move SRSR to the dollar range I don't think so. I expect the disclosure about this to be much less hyped than the reality. Partially because is how Scott works, worry about the big picture not the steps along the way but also because our investment banker, a rarity for pinks is a big time investment bank and they want to be able to have a hugely successful IPO so they can brag and use it for marketing the next IPO. So Dahlman Rose will structure this deal so the big gains will happen after their IPO. So I think the real story which pretty much guarantees the success this project will be disclosed over time without much hype instead of being a bombshell.
Now why this has tremendous potential today even with Dahlman keeping a lid on things is because our market cap is just 30 million. They certainly will want that market cap to be 100 million and likely higher as smaller brings no credibility or a reason to brag. Wow we brought a company public with a 10 million value? No Way. SRSR needs money so the Dahlman IPO needs to be sufficient size to sell say 20% and still raise 30-50 million so they have sufficient funds to get through fees ability studies.
So I believe the stock will rise 5x or more from here prior to the IPO some time early 2012, once that happens and the world doesn't fall apart I expect that that IPO performs another 5X or so. Now some believe ther eis a large naked short that will have to cover, I have always been and remain convinced today that isn't the case but if I am wrong it could really add to then upside potential.
So between now and say 18 months from now this company rises from 4 cents to a dollar based on today's structure. That gain although huge is really just the beginning as once this is actually a mine it should be doing 50 cents a share in revenue if not much much more. Also the scope of it's resources will allow it to keep doing that type of revenue beyond out lifetimes, that is the big picture, that is what Scott sees, the rest is just the journey.
While most here think we will JV with big player in a big money deal, my expectations are Scott is forgoing such a short term gain and instead plans to bring this project to mine with the vast majority still owned by the shareholders today. This is something that even he wasn't sure was possible a few years ago but the perfect storm of demand, incredible property and patience has given him a huge opportunity to keep the majority of this niobium pie for the shareholders for which he and the the other insiders are substantial ones, far more than the 30 million shares tlked about here, closer to 30% from my guess.
So I hope this gave you the explanation of my thoughts on things. I can't be sure I am 100% right but I am more than confident I am close to correct. Let me know if you have additional questions. Happy to hear everyone's opinions as this discussion is pretty much the thing we should be discussing at this point on the board.
I am eager to see the party start and thought it already would have but the big potential requires us to sit and wait. Hopefully not too much longer but everything with this story has taken longer thane expected to happen.
AI
