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If the Dutch Gold address is good than I think that one should be used. Someone can call the company and confirm the address. JAGBIRD?
DAN HOLLIS Email address: dan@danhollis.com
CONFERENCE CALL WITH DGRI: The concerns, constructive criticism, operating ideas and questions expressed about DGRI should be sent via email to Dan Hollis by each individual wanting to be heard. Lets make it easy by including a BOLD Numbered and Capped subject worD such as FINANCING DETAILS,SHAMIKA STOCK SALE, BASIN GULCH-DRILLING RESULTS,REVERSE/SPLIT, DILUTION, MINING PLAN, EXPLORATION PLAN,A/S INCREASE and SHAREHOLDER REPORTING to offer a few discussion categories for your consideration.
I believe redundancy in this case will be a good thing and a large number of emails and inquiries will have an impact.
The sooner the better.
Additionally, I am hoping this effort will help dissipate some of the negative energy that has been accelerating here.
I think the motto for this effort is "Lead, follow or get out of the way" We are either part of the solution or we become part of the problem. Take the lead and send that email to Hollis.
Thanks for your consideration and participation.
You are absolutely correct. Greed is good per Gordon Gecko. (sec)
If there is even a remote chance to be granted warrants because I am standing in line with my hand out, then I am all for it. I would rather get the shares than give them to another guy where I might not like the terms of the deal and loose more control.
I would like to address the notion that someone posted that he thought we were getting ahead of ourselves and should back away from comment on the future strategies that could be employed.
My response is that after listening to several days of bellyaching and criticism without offering concrete solutions, it occurred to me that in the scheme of things Hollis and the team are really doing a pretty good job given the circumstances. They have narrowed the issues and have only really one challenge left to overcome to move forward. As mentioned, this issue will soon be resolved one way or the other. If it is done my way than I would be very happy but if not, ok just as long as it gets done.
For me, contributing comments about the company and the stock is not about sitting on the sidelines and watching the game. My view is that investors in the penny stock zoo are in the game and must stay alert or get eaten. I have wounds from previous games to prove my point. This is not a spectator sport.
Are you suggesting that they close the doors and just walk away because you think the challenges ahead are just to big? The truth is none of us know anything for sure. We may not wake up in the morning but I am going to brush my teeth just in case I do.
This company will be as all success stories are built on entrepreneurial skill and tenacity and a burning desire to succeed.
If I run into a problem tomorrow I will try and fix it myself or suggest a way to fix it but I'm not going to stick my head in the sand and pretend that it doesn't exist.
DRCAl has mentioned that Pascoe is in the business and has many contacts with some major gold producers and had offered to introduce DGRI to his contacts. I assume for a fee or some form of compensation. Dan Hollis declined to accept the offer at that time.
The only reason the company will do an r/s is if they want to get rid of the current investor group and replace them with new money secured with convertible debt. Right now you don't have a bankable feasibility study so it isn't likely that Daddy Worbucks will show up any time soon so no r/s. My concept will resolve the feasibility issue, provide the capital necessary for development and would prevent the necessity and use of an r/s for future capitalization from happening. All of this in favor of existing and some new shareholders because no feasibility study will be completed until after we are compensated with exercisable warrants
By the way, the suggested exercise price is $.05 per share and is vested after the new 500,000,000 shares are subscribed and sold. The term within which to exercise the warrants is 5 years.
So, if I now own 1,000,000 shares and receive an option to buy another 1,000,000 shares at $.05 per share and I wait it out to exercise my option until the pps is $1.00 you can see that I just sold those shares for $1,000,000 and I paid $50,000. Remember these shares are coming out the company treasury so the company gets the $50,000 and I get $950,000. That's not a bad return for supporting an increase of the A/S.
The concept should percolate all the way to Atlanta and I am sure it will if I have anything to do with it.
You are right there can lots of variations and considerations but if it's good enough for Warren it's good enough for me.
Everybody gets to VOTE
I thinks it is important to understand what line you are holding. In other words the reality you are facing.
On June 30th there was $21,000 cash in the bank and some stock.
Whether financing is creative or not you can't go to the mine without it.
I don't care where it comes from but it is coming from somewhere and it must show up pretty soon according to the financial statements.
The alternative is unacceptable.
I missed that statement but you need to know that he is heavily invested at over $.20 per share. I personally didn't watch the price movement closely today except to recognize volatility.
As you have read, DRCAL has been ticked off about the decision not to sell Shamika2 shares and I think that one issues has carried a lot of weight with him.
Otherwise, like the rest of us, he has now read every word of the 10Q and better understands the challenges facing the company.
If it becomes the only way to finance operations to achieve production what choice do you have?
DRCAL had to run off to an appointment and asked me to let you know that he has not lost all confidence in DGRI management. By any stretch of the imagination.
"I now understand their issues and financial limitations much better."
We both want you to know we are impressed by the honesty displayed in the content of the 10Q and DGRI deserves a lot of support and respect for making the effort to get it right. The quality and lack of puffery in this document has been grossly undervalued.
Think about it, the reason investors get whipsawed is because of overreaction to sometimes questionable company events and puffery. Realistically, DGRI's pps should have gone up 25% today after release of it's plain vanilla, tell you nothing including no real bad news and mountains of details about past financial transactions, 10Q. I own another stock where that is exactly what happened today after releasing an even more benign and boring 10Q and we know for sure that to finance future development and operations will require at least $25 million, maybe $50 million and a bunch of the A/S will be used and dilution will occur for sure. The DGRI finance issue will be resolved one way or the other and why anyone would think otherwise is beyond me. If I in my feable mind can think up options, just think what the professional who does this every day can do.
By now, you are totally aware of my opinion that the company has numerous options open going forward. In my opinion the option I like the best is to self finance by selling shares and reward the existing shareholders appropriately.
Dienhart, Acqisition Debt and the Symbiotic relationsip.
The fortunes of Mr. Dienhart and crew and DGRI are inextricably tied together. One really can't survive in their positions with DGRI without the other.
If default forces DGRI into BK, Dienhart can get wiped out.
If our current management is not supported by Dienhart and the shareholders, there is no credible, taleted, creative replacement that will step in and replace them and support the shareholders. The bottom fishers will pick the bones and take over the assets at bottom basement prices.
Without Dan Hollis and crew and Dienhart and crew the shareholders equity position in the company will be at risk.
As previously posted, we shareholders have an unprecedented opportunity to influence the direction and financial health of the company if that is what is needed and the appropriate share structure is employed.
With the options open to the company to finance it's business plan, smart investors should be gobbling up the float and driving the pps to near $.05.
Do you have any interest in sharing the formula or system you use to make predictions?
DGRI is a gold exploration and mining company. It is also a Financial Engineering Company. Almost every start up early stage gold mining company in this space must excel in both categories to survive.
I prefer to think of my investment in DGRI as an opportunity. An opportunity to contribute my thoughts and ideas to the company after I learn how the current and future operations may effect my net worth.
Thinking only about the assets and the potential benefits from the ownership and employment of those assets, all the possibilities that may be available should be considered.
The confluence of events leading up to the recent 10Q along with detail of the realities exposed regarding the servicing of debt and ongoing operations provide us with an opportunity to consider the possibilities going forward.
In looking around at the share structure, debt and revenue and operating expenses of many peer companies there is a wide spectrum of strategies being employed. One company that many are familiar with here has 2 billion A/S and 750 o/s for example. Focusing our attention on the possible alternatives available to DGRI to move forward given it's present structure and position few options come to mind.
A. Increase the A/S and obtain outsize financing.
B. Increase the A/S and sell stock.
Under the circumstances, without any other knowledge about financing, both options will at least ultimately require increasing the A/S and diluting the stock. Maybe.
Many folks around here have opined that this is totally unacceptable but my opinion is that it always depends on what you get for your money.
If it means that the company survives instead of defaulting on it's obligations and going BK, then object all you want but there is no other alternative.
If the structure of the dilution provides the capital to completely fulfill the exploration and mining business plan for the next two years and resolves any short term and long term debt obligations then we have at least won some very difficult battles. We then will have the opportunity to win the exploration and production war.
Some Financial Engineering
I know a lot of you will think I am crazy but if there is no other source of financing I am in support of increasing the A/S to 1 billion shares. Selling the 500 million shares for %5,000,000. As compensation for shareholder loyalty I further support that the company grant warrants or options for all shareholders exercisable once the new shares are completely subscribed to purchase one share of stock for each share owned for $0.05 per share. The time to exercise the options to be no less than 5 years.
The effect on existing shareholders is that they end up with 500 million shares with options to purchase one share for each share owned. The effect for the new 500k is the same so a total of 2 billion shares will ultimately be outstanding after all options are exercised, the company can now easily do the necessary exploration and start up production in a heartbeat. The company benefits with an almost immediate $5,000,000 injection of cash and ultimately an additional $50,000,000 when all options/warrants are exercised at $.05 per share. This will pay off all the debt and development costs that we can now foresee. As a condition I recommend that DRCAL is appointed as an independent director and represent the shareholders on the board.
The availability of funds changes everything. Basin Gulch projected production could easily be doubled from earlier 25,000 oz gold to 50,000 oz. per year. With the current trajectory of the price of gold, it seems probable that we are looking at $2000 oz gold for pro forma purposes. If all of this is realistic, then the current shareholders position will not have changed with 2,000,000,000 shares outstanding as the price per share would be somewhere between $.60 and $1.00 per share based on formulas we have been using for analysis.
In my opinion, everything is relative and all options should always be up for consideration from a Financial Engineering perspective. I believe that attaching a warrant to buy one share at $.05 for each share owned can be the financial engine that drives the company forward quickly.
I know we have Financial Engineering types among us and it would be much appreciated to learn your thoughts.
Everything is computerized these days. 20% of data is inputted from variables into pre-programmed data bases and 80% of data is boilerplate. Along with the assistance of Computer Assisted Data (CAD) systems the turnaround time is now measured in weeks not months. Even very sophisticated graphic programs are off the shelf for specific purposes. Depending on what you want the graphic output to look like is a major determinant of the cost and time involved if custom programming is involved.
It would be good if you would explain to us how a reverse split will produce capital to be able to pay debt.
Otherwise, except for the editorializing that was a very nice presentation of a lot of very detailed information. I hope all was included and nothing intentionally left out.
It is the care that went to preparing and presenting the operational details by the company of some very complicated transactions that impressed me the most. A lot of very clever deal making went into stitching this company together.
Otherwise the 10Q is quite boring and very plain vanilla.
The financial consequences and short term ramifications are much less important. The reason is when you are out there putting acquisitions and financing's together for gold mining companies it's not like closing a 30 year fixed rate loan on a home.
It's messy.
The company needs to raise money and we will hear more about the details shortly.
In the meantime, relax and enjoy the ride that I'm sure will be the most abundant financial journey most of us will ever experience.
There is not one thought that you have ever expressed here that hasn't crossed my mind. Investing in any of these companies is a high stakes game. It seems that your investment preference is to find clean companies with no problems. DGRI has been a messy company and still has problems but of course that is why the pps is so low and my guess, relative to it's peer group, has always been low in comparison.
The truth is even if this was a start up right out of the blocks with an LOI on BG with nothing more then the studies and reports that have already been done no matter what you call them, the value of the company would far exceed $5,000,000, maybe $25,000,000. THAT'S with NOTHING! It's being done every day and if anyone knows it, you do.
Whatever the potential is at Basin Gulch, it was there yesterday and it will be there tomorrow. You and I are both fortunate enough to be pretty well positioned and stand to benefit from even the smallest revelation. Add up all the small ones and wow. POP.
I think we had the pop yesterday. So what do you know about these guys?
Frelodr: Good questions and I don't think that over the long run that a $30 million drilling program for 1000 acres is a lot of money. The odds are that in the long run it will save 3 times that by locating shafts in the right locations the first time around.
It's good for us to remember that it has been found and reported to us that the quantity of resource way deep (1000) feet or more are know to produce 9X the surface levels. The Homestake Mine in Wyoming is sited as an example.
I think that the message being sent to us in the form of an estimate of $5,000,000 needed over the next tow years for exploration and test mining is meaningful and I am not quite sure what it means.
After noodling this for awhile and considering we have no follow up on the drilling program from the first half of the year, I'm guessing that their could be a case for expanding the drilling program and obtaining more concrete results before locating a mineshaft. We have often questioned here how lucky you need to be to get it just right with a couple of shallow core samples and one deep hole.
Although the strategy sounds good because of the geological configuration of diatremes and it is the least cost method to possibly produce a bankable result, it has always seemed to me to be long shot. If they hit the jackpot with a long shot strategy then hooray, lets start digging.
If not, then we need to go to plan B. Plan B should be to employ a comprehensive drilling and assay program and do it now.
Doing it now will require raising capital.
We should all think about the options open to the company to raise capital and the conditions and terms that would be acceptable to us because one way or the other we will be effected by the effort in the short and long run. The question is where is that $5,000,000 coming from and what are the terms.
It is my sincere desire and hope that we all succeed with this investment. There just aren't too many out there where you can control 1,000,000 shares for less than $10,000 that have this potential.
I'm not a mind reader but it looks like Hollis has something up his sleeve and it's not going to tank my investment.
If you are like me you didn't sell when the pps dropped 20% from the price you paid for it. A professional investor would never
let that happen.
Maybe someday I will have the discipline to follow the rules but for this puppy it's far to late for that.
Together we can influence the company. We have two weeks to figure out what we want and make our voice heard.
The loan to Trellis was made in March if I am right. Not a very current event that relates to the current cash balance in any way. Without reading the note we are dancing in the wind, however the scenario I described is a common tool.
It becomes obvious that with this filing there isn't much left to talk about except for a little trivia.
The unsolved material problems and issues are all now well known and as they are addressed the velocity of progress will accelerate faster than you can imagine.
We are now at the stage of development with DGRI where small changes and accomplishments produce massive results. It's like trimming tabs on a sailboat. You see it in the 10Q. It is so clean, it's boring but the small changes made in reporting to gain transparency and credibility will impress even the most skeptical potential investor and maybe even create some competition to become our qualified investor/lender.
As our ship begins to turn there may be a little time left to acquire cheap shares. I suspect that this is a very short window of opportunity. Contrary to a popular notion around here I see some very compelling reasons for demand for the stock to increase with vigor from this point forward.
There are no real negatives or mysteries and no one is going to be able to buy this at around a penny in two weeks. You just can't get any riper when you have a clean company, good prospective resources and you only need a couple of million to get rolling and the update on everything you want and need to know is coming at you in two weeks or less.
Because this is a gold mining stock with solid patents and leases for it's properties, a management that recognized the need to clean up disclosure and the paperwork to move forward and is now positioned to take advantage of the knowledge gained from it's limited exploration and armed with a sensible and focused plan, it appears that the outlook is to hold what you got and buy if you don't have enough at these low prices.
Those who do their homework know.
There are 900 acres. $26,000 for the shallow holes and $75,000 for the deep holes plus fire assay costs at $45.00 per burn. All this not including computer modeling. If you extrapolate from the above costs and the previous drilling of 323 holes for about one/third of the property the result is around $30,000,000 to drill and assay about 1000 holes. When you look at peer group exploration plans for underground resources that number pops up quite often. Doesn't need to be done all at once but at BG you can't anyway. It's probably up to a 5 year exploration project after production begins, where most of the cost will be paid from ongoing production. However, if we hit the mother load along the way it will be easy to drill and map the whole project.
The Capital cost to build the mine is also an ongoing expense whereas most of the cost will be come from mining proceeds on and ongoing basis. Although it is often financed with debt. Some upfront Capital is required to get going. DRCAL has stated that he thinks $4,0000,000 is about right. If we have good drill and assay results it will be no problem to finance this and much more with some form of convertible debt.
The Operating cost to mine and mill the ore for hard rock underground mining is roughly $650 per oz gold and paid for as an operating expense from the proceeds of net mining revenue on an ongoing basis.
All of these projections and future costs don't really mean much right now. The focus must be on doing the right exploration work to get to the right location to dig a mineshaft and find the financing to get there. FAST and NOW.
Sounds to me that this could be part of a finance acquisition deal where Trellis would pay back the loan from fees earned from obtaining VC funding. The loan to pay for Trellis expenses associated with finding the funding from the VC. Would be a step in the right direction. If it's something else than so be it.
Because that statement has been made publicly, the company can clarify what it means in detail. It seems to me that the statement can be interpreted that the company is changing course somewhat toward a more conservative approach to exploration and actual mining.
DRCAL and I have both mentioned from time to time that it would take a bout $30,000,000 to properly drill and assay the property. And that may only be the beginning depending on findings.
This can and should be done in phases and the projected capitalization of $5,000,000 probably reflects this.
It looks like from the 10Q that whatever happens in terms of financing needs to happen pretty soon given due dates on interest payments etc. and being able to cover operating expenses. Exactly what those operating expenses will be for the rest of the year is subject to restatement depending on the extent of exploration expenses and some test mining.
In my opinion, the companies approach to the realities faced in the exploration and mining of the Basin Gulch Property have become less "speculative" and more "conservative" in that it looks like they want to do a lot more drilling and assay work before committing to a specific mine shaft location. This effort will take funding that is not yet in place. Of course they could say it like that but they all go to a special school to learn how to stuff a lot of information "between the lines" so that is where you need to go to try and figure out their intent.
What I read between the lines is that they have or are in the process of changing their approach. I consider this a positive move that will ultimately produce better results much faster than we could have realistically expected from drilling one or two deep holes. This probably means that production except for maybe some test mining will not begin during the fourth quarter however test mining will focus attention on larger more productive reserves that can be a lot more productive in the short run.
We can trust that the new conservative approach will be unveiled at the upcoming conference call and I think that each and every one of us should send their questions to Dan Hollis via email prior to the call.
The 10Q revealed some positive progress. The conference call is where the rubber meets the road.
Much of the companies time and effort has gone into clarifying the legacy transactions that gets you to a position that everyone can follow the bouncing ball and track every dime in and out. You can't finance future operations without it.
With a clean filing record and proven resources the company should be able to close on some private financing.
The 10Q backs away from any further discussion about the quality and/or quantity of the gold resources that may have been revealed by the drilling program during the first half of the year. Results may have come after that period and will be the subject of discussion in 14 days.
Apparently we need to wait another 14 days to learn exactly what it is that is going to make us "a happy man" according to Hollis.
The governance and reporting of non-exploratory and non-mining related company events has been improved. This is probably the result of the SEC investigation.
It is stated in the 10Q that $5,000,000 is needed for exploratory and test mining over the next two years. In my opinion, the detailed clarification of this statement is where our focus should be.
You are quite welcome. I have been in this for a long time and it looks like they are going to reach their potential and quite soon. It looks like you have been doing this for quite some time and know the ropes. I think it is time to get the word out about SRCH so any suggestions or help would be much appreciated.
10Q filed 8-12-11 for quarter ending 6-30-11
VERY POSITIVE
www.otcmarkets.com/edgar/GetFilingHtml?FilingID=8096169
After 6 months of testing the results of the independent study is not final yet. Nevertheless, it is assumed that the independent testing has all but confirmed the companies more that 100 bench tests that produced an average of .50 oz gold per oz. using the newly adopted autoclave and hallaid leach system.
With an estimated 10,000,000 ounces of gold in the slag pile and the current gold price trajectory, it is my opinion that continuing to finance the completion of a bankable feasibility study and the construction of the operating plant is inevitable.
The company has projected building a 2000 ton per day plant to process 360 days per year.. When you do the math you will find that the value of that production at $2000 per oz gold is near $25.00 per share.
To say the least, the company has conservatively understated the potential of the Clarkdale Slag Reclamation Project. In my opinion the new plant can be operational in one year.
I own stock in another mining company where management disclaims any knowledge about the mining industry, and in any way about the process it is developing to process the material. They further claim that they rely solely on the opinion of hired consultants.
Similar to DGRI, the stock is selling way below what it is worth if all the problems were solved and they were in production.
It's a pretty simple formula, find companies that have problems to solve and/or are in the early stages of development and not yet on the radar , buy them cheap, watch them very carefully and harvest the rewards from those that get over the hump.
The Parado Principal tells us that 10 out of 50 will make money and that 2 out of 50 will hit the jackpot. DGRI is probably one out of fifty that will hit the jackpot.
Thanks for the post. Are you suggesting that this somehow relates to DGRI's circumstances?
I am aware of two mills nearby with capacity. Procession is not really a problem.
I would think that all the net would be plowed back in for several years. Long time before you see dividends paid from mining companies. Doesn't matter to me, I am interest in the value of the stock increasing based on eps.
First, the plaintiff will need to get a judgement. Then the plaintiff will need to collect on the judgement. There will be some value attached with the judgement and maybe even a judgement for attorney fees. If the liability is small and/or Dutch is not liable but merely named, Dutch's first step will be to demur to the alleged offending party. Second, Dutch should file a response so not to loose the case by default unless that is the appropriate strategy. In any event, this can take years.
I agree, but from an accounting perspective, net income is net income regardless of how it is employed. The value of the stock will be determined by the net income even if every cent is plowed back in to pay debt or capital improvements.
My outlook is positive for DGRI. I believe Dan Hollis but unfortunately, the company has not supported our confidence in recent times by providing a detailed update about the progress made toward production or any other material event. A lot of people think that should be happening frequently and they are ticked off because it has not.
The only namby pamby response I can muster is "the end justifies the means or it doesn't".
I have chosen to put myself in this position but the odds are that if I had chosen some other number of early stage gold exploration companies I well may be in the same position with them but for different reasons. In fact, I am in the very same position in another company.
It is very difficult to prejudge the winners and losers in this space when the race begins. Then there is the multitude of considerations to determine if the price of any given company is affordable for me and that the future growth and success of the company fits my personal expectations of contribution to my wealth.
Right now the odds that DGRI will succeed are good.
farfromrich: I am very much aware of your contribution here. Thank you. The world is changing in many ways much faster than we can see. Much faster than we can imagine with regard to commodities, gold and the fortunes of DGRI.
The fortunes of DGRI are inextricably tied to the following:
We are involved in the pioneering of a world wide new age of personal and collective responsibility. We have witnessed the overwhelming power of the quest for personal freedom and equality emerge around the world and at home. It is far from the final curtain to drop on this drama but through all the sham and drudgery that is exposed and the fortunes and misfortunes we will experience the world is sure to be a freer, safer, richer and better place.
This is the simple truth, if I have a vote, I better use it wisely and make it count. If I don't have a vote, than I am going to work until I do. Eventually, everyone on the planet has a vote.
Eventually, the entire planet is a prosperous and thriving place for everyone.
Eventually, because of world wide prosperity, the value of gold will exceed anyone's wildest imagination. Gold is really the only indestructible precious metal that is so rare it's total quantity is measurable from year to year. What else would anyone be willing to measure the value of any hard asset against? If treasuries can turn on the printing presses at will, the answer is clear. The fact is you don't need a gold standard, you already have one. It is reflected in the price and demand for gold. It is measurable on a daily basis.
DGRI has an unprecedented opportunity to develop the Basin Gulch gold resource. Given the future value of the resource along with the future value of all known and unknown unmined resources world wide the value is enormous.
I am intuitively quite sure that the present value of all current inventory and unmined gold to be found in the next 5 years is at least 5 times the current value of about $1800 per ounce. That is a compounded annual rate of growth of about 25% to $5,400 per ounce. Just do the math for DGRI. The world is waking up to the fact that no other asset value is dependable, none. The examples are endless. If a couple of more wheels fall off the economy anytime soon you can revise my prediction to 10 time the present price of gold. The only commodity that has and will outperform the rise in the value of gold is greed. We may all need to seek out and invest in the greediest among us in order to accomplish prosperity for ourselves and the masses. I will and I do as long as I have a vote.
This is a rare time in the life of early stage gold miners to control their destiny and create great wealth beyond imagination. DGRI is days away from revealing how serious it is about achieving success now and in the future. Given the backdrop of the failing world wide economy and the complete financial reorganization of private and public organizations and institutions world wide and the growing reliance of gold as the only stable commodity on the planet there is simply no excuse for the failure of DGRI to achieve production within a reasonable and professionally planed schedule.
Welcome, I have found that for those who have just been introduced to DGRI for what ever reason, that it would be a good idea to do some homework on the posting here for the last six months or so. A lot of effort has gone into building a body of knowledge about the company and the stock and at the conclusion of that research there will hardly be a due diligence stone unturned and you will be able to answer your own questions. Good luck.
Hurricane Ditka; It sounds to me that you need to make a decision. It doesn't feel like you are trying to influence someone else's decision, just that you are angry and don't know what to do about it. A telephone conversation with Dan Hollis may help. I know that several around here have his number if you want it. I also think it is posted on the website. Good luck in figuring this out for yourself.