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I'm very impressed. Hardly any sells at the close. Everyone holding tight, not much trading actually.
I see very little downside here. The shares for debt reduction actually strengthens the balance sheet. The book value is actually below the market cap. I think that by February, this could be .15. Good luck to the early investors.
CAGC hit the 50 day SMA, and then left the station. Strong versus a tough tape.
Some great transparency here.
http://www.pinksheets.com/otciq/ajax/showFinancialReportById.pdf?id=27997
Audited financials and a few deals, and .03 will be a distant memory.
Ely, any thoughts on the game? Going to be very interesting.
This is a great article on mining valuations:
http://www.sourceonecc.com/cij.pdf
Yeah, well they would have to come to my house with a gun to get my shares.
They are saying no to .10. Lots and lots of shares denied at that wall.
Someone tried to punch it through, but no dice.
Lots of IRA orders, 4999 a ticket. Tucking this into retirement accounts long.
I just did the same thing. Don't want it borrowed.
Got all my shares conditionally sold at $1 to prevent those short borrowers from bashing down KAT.
Volume was so light back in August, I don't see any overhang.
I totally agree, the .065 resistance was creative charting. Wasn't really there.
Resistance at .065 is a joke. Look at the chart. 500K shares traded on August 6th, and 200k shares on August 5th when it was .10. This is what I call creative charting. There aren't a bunch of sellers sitting at .065.
Can anyone explain this to me? Sounds like BS.
I mean that the dollar will be weak enough....
The U.S. is going to boost commodity prices in the near future. They will make sure it is weak enough to potentially prop up the economy.
I agree 100%. This is how you get eyeballs on a great thing. Don't worry about weak hands, strong hands. Right now it is about being recognized as a legitimate company.
By the way, this is one of the best boards I've ever been on. Clear concise information and opinions, no basher garbage. Thanks to all who contribute.
Appreciate that, but I'm 50% out at $1. Until then, I wouldn't sell with a gun to my head, it's so cheap.
Dagg,
I wasn't assuming .05, that is the price. Thus the company is cheap right now.
Nathanial, I agree, yet the point was more to illustrate how low the valuation is, than to predict the upside. Essentially, a real bottom has been put in the valuation with the recent financing deal and what appears to be a final capital structure plan.
Valuation redux:
Since we now know that we have 463 million shares, and considering the way Ken has been operating (I bet we will know why soon), the market cap of the company has changed:
463 x .05 = $23 million
This is still low considering $5 mil is cash and a ton of these shares are restricted. I wonder how many, because as of 12/23 the public float was only 68 million, per the disclosure agreement.
So, what is the upside? Well, if this went to $1, then KAT would be worth 460 million. Similar to TGB. Now that is a stretch for 2010 I think. But, a move to .30, considering how it appears multiple properties seem to have near-term value, would put the company at about 150 million. Very doable in the next few months from what I can tell about the drilling timeline.
Thoughts?
Haven't they already taken numerous samples from that property and posted the results?
No comments at all?
Let's take a look at valuation. I always like to start here when I buy a stock, so I know what the floor is. That way I don't have to worry when the fraudulent market makers try to shake me out. I can then add with the bad guys.
So, via the disclosure statement on December 23rd (Which is a great thing, you all should read it. It also generally precludes a move up to a higher exchange.) the outstanding shares are approximately 300 million. Now the key number is the float, which stands at 68 million. The remainder of the shares are restricted, or held by the owners. These 230 million are not freely trading. Great news.
So at the current price of .047, we get a market cap of 300 x .047 = $14.1 million. Now the company has $5 million in cash. So the value of all of their stakes is a mere $9.1 million. So for each share you buy, you get .016 cents in cash and .03 is the price paid for Ken and all his claims. Sounds like a bargain to me.
My plan is fairly simple. I have added today and yesterday on the dip. If it gets to .04, I will add more. I will hold until at least the drilling results come in, but any pop that makes the valuation go out of whack, I will sell some. For example, a ride to $.50 right now would put the market cap at 150 mil, which is too expensive. (If they have a JV deal, then the rules obviously change.)
ScottM
They are walking this thing down, the last 500k of buys was flatly rejected and it continued lower. Totally shady, but that is part of this game. I guess you have to use this fraudulence to add shares.
I believe Reg Short is the rule that is meant to indicate a failure to deliver shares, implying that naked shorting is taking place. Obviously, this is illegal and very common.
What are you using to see L2? I can't seen it on Fidelity active trader.
Looks a little tired, been a party for 4 trading days. Might catch a breather for a couple, but we'll see what the close says.
Anyone know where to get L2? Active trader pro doesn't have it for this ticker.
Level 2 is unavailable on Fido Active Trader Pro. Any ideas where I can get access? Thanks, ScottM.