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Insiders dumped 475k shares yesterday. So much for the buyback!!!
These guys are clearly full of sh**, which is reflected in the share price. Wouldn't be surprised if the dump came from Robert Eadie who bought shares on Dec 19 and then dumped them all on Jan 6th for a 1 cent profit/share (whopping profit of $3,700)...what a joke!
Thanks for the update Troy, but just as I suspected, no clear answer on buyback! I asked the same and got the same response. I didn't ask to know exactly what day they plan to buy back, but the share price is down 60% since they announced a dividend. You would think that now is just about as good a time to buy back, but I guess not. And as for his comment about the gold sector being flat, lol!!! All gold stocks have been flying high for the last 2 weeks and only SAM is flat.
Time to put your money where your mouth is management!
IR knows nothing or is not saying anything of value. A couple of weeks ago, I asked IR why the company was not buying back shares at these ridiculous levels (market cap of $17mm) and the answer was "we don't know and we are just as frustrated as our investors with the share price".
Conclusion: Total BS!!! If they are frustrated with the share price, they should take action and buy back shares (as per their announcement). This would surely bring the price back up. So my question is...are they full of sh**...or do they have no money to buy back shares? I'm down 60% on this stock. Fundamentals are there (profitability, dividend...), so something doesn't add up. My gut tells me to take my losses and walk away because I smell scam, but yet I choose to wait and put my faith in management delivering on the share buyback.
Just 2 questions for me:
1) What will be the dividend policy going forward?
2) Is the company waiting for the market cap to go to zero before they buy-back shares?
Hey management!!! We're still waiting for the company to buy back shares. Surely management thinks the shares are undervalued at 12 cents, no? Yet, there is no buying on their part...Hum! Starting to small like a whole lot of BS...
My average is in the low 20s, and I'm also not pleased with this freefall, 1 cent at a time.
All fundamentals look positive (profitable, dividend, share buyback...), yet here we are tanking on a consistent basis.
Current market cap is $15mm, which is peanuts, and yet the company is not buying back shares. Trust me, if they were buying, we would know! First of all, insider buying has to be reported. Second, we would know, because demand would exceed supply which would drive price up.
It's very simple: the company is not buying shares back even at this level ($15mm market cap). So my question is, WHY???
So what do you think? Is it possible they have no money to proceed with the buyback or simply have no interest in buying back shares and just press releasing BS?
Are we going to $0??? Spoke with IR yesterday. Eadie apologized for the share price. When I asked him why the company was not buying shares yet, he had no answer. That is clearly not good!!!
The market cap is $15mm, which is ridiculously low. 10% dividend, cash flow positive and promisses of buying back $1mm worth of shares.
Something simply doesn't add up here. We are either being scammed, or this is the best bargain out there!
My gust tells me we are being scammed, but I have no proof. WHY IS THE COMPANY NOT BUYING BACK SHARES AT $0.12????
No explanation = no good.
Now it's starting to make sense why this thing has tanked ever since they paid a dividend.
The dividend was simply a carrot to get new fish to bite while they dumped. Down 35% since I bought this POS. As for their share buy back BS, I'll believe it when I see it. Market cap is ridiculously low, yet I see no buy-back. If management thought the share price was such a steal, why are they not scooping all the shares?
a couple of months ago
I hope you are both right. I bought in at 22 cents and I am really not impressed so far. Management's actions will speak shortly. Will they back back shares at this ridiculously low price, or make excuses?
Troy, thanks for the update. Their actions will speak shortly. If they truly believe the stock is undervalued (which I agree by the way), and they have the excess cash at hand, then I guess it becomes a no brainer for them to buy back shares at this level, which will slowly bring the price up. I must say, I am skeptical!
Meal deals are very rare and the market usually gets it right. Is there more to the story than we know (i.e. reserves are done)?
Troy,
I understand shareholders could get frustrated by missed timelines, but the truth of the matter is:
- company generates $10mm of operating cash flow annually and is debt free
- company just paid a 10% dividend (not sure if they will keep paying it...it maybe a wise move to pay it quarterly going forward)
- company plans to buy back $1mm worth of shares in 2015
On the surface, and fundamentally, this is a no brainer! Should have a market cap of at least $50mm - $75mm.
My personal opinion is that the market believes that the current mine is on the verge of being extinct, even though management keeps announcing new reserves.
I'm also holding (got in at 22 cents), but it's very frustrating seeing this go down a penney at a time.
Troy you seem to have been around for a long time. Based on what I see, this stock is way undervalued. Should be trading at 50 cents in my opinion. In your opinion, why do you think it is so undervalued? What am I missing?
Makes me wonder how it is possible for a company backed by Hebei not to be able to secure financing. The only possible explanation would be that Hebei did not want to back up the loan (sign as guarantor). Then management goes and signs an offtake with Glencore (with no equity investment), when Hebei paid $2.50/share for its equity investment. Just doesn't add up. Would not be shocked to see this go to zero unless Hebei steps up to the plate and helps secure financing.
All I'm reading is that financing fell apart. They were working with PNB Paribas for over a year and now Paribas is gone. Doesn't sound good to me. Makes me wonder how a company with the backing of Hebei can't secure financing. The only explanation is that Hebei doesn't want to sign the banking agreement as a guarantor, in which case it will be pretty difficult to go secure $1 Billion in debt. Good luck to all. Glad I got out.
Nobody really took the time to read between the lines. The 2nd offtake partner did not invest any money in Alderon (equity investment). The financing derailed and now with a piece of equity missing, they will need all the luck in the world to secure financing.
SA authors are clowns! This will be trading under $1 after AGM. Financing is dead for now. Not saying that it won't happen, but not for another 6 months at the very least.
forget macro economics and China. The share price will tank because sooner or later management will have to let the cat out of the bag that financing derailed. My guess is they will have to answer this at AGM coming up. Once they admit that financing has derailed, i guarantee you this will dip under $1.
Financing has fallen apart! Won't see a shovel in the ground until summer of 2015 if they even ever get the money. This thing will be 75 cents by september.
BMIN has a market cap of $23mm with no cash and no hard assets. MOU also stands for BS. Typical OTC scam...300mm shares outstanding already with no cash. If they were to raise money, the float would easily get to 600mm. As tempting as the "MOU" sounds (i.e. the value versus the market cap), I smell the BS a mile away on this one.
And why would AXX buy this POS when they are on the verge of putting together over $1 Billion in financing for their project in Labrador???
If you look at their Web Site under procurement portal, you will see that many contracts have been recently awarded for the construction of the mine. If financing was still a hurddle, I don't think they would be taking the chance of awarding contracts. The financing must be a done deal and the construction will start in the next month or so. At this point, the project is substantially derisked. Their anticipated all-in cost per ton is $70. Spot price of iron ore is expected to stabilize at $120 to $130 per ton. At 8 miilion tonnes per year at $120/ton, we are looking at $300mmm to $400mm of annual cash flow. Very undervalued at this price. I expect this to be a 10 bagger within the next couple of years. Once financing is officially announced, this should be trading north of $4 a share. Once this goes into production, it should be trading north of $10 a share.
In case anyone is wondering, those last 10,000 shares that traded were me. I put in a sell order of 3,000,000 shares at 0.0001 and only 10,000 filled (yes that is $1 of proceeds at a cost of $9.99 with TD Waterhouse).
I forgot to put all or none, lol! So I canceled the rest of the transaction. Something is going on, although not good. Why would any MM fill a trade worth $1?
Can anyone please explain how AXX is trading lower than before the transmission line and Federal EA announcements which were both huge milestones???
I'm sure the 2nd offtake and $1 Billion financing are both done deals subject to those 2 milestones completed, so basically the project is almost completely de-risked! Has the market not digested the latest PRs or am I missing something?
For the record, I don't believe you were ever dazed!!!!!! If you were dazed, that means the product not only exists, but also works. If the product works, then it makes no sense that not 1 unit was ever sold.
If the product existed and was so great, don't you think they would have sold even 1, just 1, one only, in the last 10 years? Comon' man, you're better than that.
Amen! smartest post I`ve read here.
Please tell me that you don't think this company is capable of getting a U.S. army or Navy contract! Chances are your product doesn't exist or simply sucks if it exists and no one wants to buy it. For years I`ve been hearing that Clown Battis with his "message number 17 to shareholders" promise the sky. What a scammer!
Panama canal has nothing to do with Alderon. Alderon will ship out of Port of Sept Iles, Quebec directly to China.
what are you talking about??? What does the Panama Canal have to do with Alderon, a canadian mining company that will ship ore from the port of Sept-Illes to China???
Last time a checked this stock was over a year ago. Same old story...growing top line and continuous losses due to overspending and over compensating executives. Did I miss anything, or is that pretty much still it?
I disagree that's it's too early. According to Alderon's corporate presentation on its website, the 2nd offtake partner and environmental/construction permits were expected in Q4 2013. I'm sure the $1 Billion financing (also announced that they had a letter of intent from PNB Paribas Bank) is subject to environmental permits and 2nd offtake.
The million dollar question is, did any of the pending catalysts derail?
This is starting to stink. 2nd offtake was due over a month ago...no permits...no news on financing...and now bad press on Hebei...This is not good.
Care to guess why the share price is plunging? I know there was some noise in VOCM articles about a possible delay, but not enough to explain today's action (especially the volume on TSX). Either panic selling by the uninformed or we this thing fell off the rails and we are the uninformed. Wrote to IR, but no response!
Starting to lose patience here. 2nd off take partner was supposed to be done by October which came and went. I'm hoping it's a done deal pending environmental approvals which I'm hoping will be announced soon. I believe the deadline for the envrionmental approvals is early January. Keeping my fingers crossed that there are no glitches! Permitting, 2nd off take and financing. Once these 3 go down like dominos, then I think it will be smooth sailing from there. Any thoughts?
Fun Fact: Shiva was know as "Jingo", the legendary disco dancer. I swear to God. Go look at his last post on FB!
Anyone Facebook Friends with him? How about that certain someone that said he spoke to Shivus not too long ago, and claimed that Shivus was coming back in a glorious way?
Ha!!!!! I suspect half the people that were posting here were part of the scam...
This is big! Next off take and financing were most likely subject to environmental approvals, so it's probably now more or less a done deal. See you at $10.
This was already announced by Alderon on August 15. We have not had any news since september 12. I'm looking for a new PR showing positive indication that the environmental permits are coming. There is a lot more mining equipment purchases pending. If these are announced, that will be a positive signal that the permits are more or less a done deal. For me, this is key. Financing will fall into place once permits are a done deal. Once financing gets done, I think we are looking at a significant upside.
great article. Pretty much sums up the situation. I think between now and year-end, all the pieces fall into place (2nd offtake, permits and financing). After that, construction begins and the share price takes off. Unless the price of iron ore tanks in the coming months, the share price will start moving towards $10 (just my opinion of course). Once this mine goes into operation (again assuming the price of iron ore doesn't tank), market cap should peak at $2 billion (about $12/share after slight dillution)