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What do you mean "find some gold" ?
Today's announcement said that the Illinois-Central mine has
VERIFIED minimum 1-year reserves at 11,000 tons of 3.6 oz per
ton gold. That's almost 40,000 ounces of gold, just sitting
there...verified. What more does the market want ?
( By the way, 40,000 oz is worth $ 32 Million ).
It can't possibly go to $ .03.
That price would be equal with the worst
prices seen in the old DCUT days ( except $ 0 ).
1x2 was the old bottom for years, which would
translate into $ .02 x $ .04 with the 1:200 split.
The old DCUT was worthless, but SFMI at least
has a future. There has to be SOME premium for
that. Besides, even shell companies have purchase
valuations in the current SFMI bid-ask range
( the current price has a $ 1.4 million market
cap ). So, downside risk gets relatively small
at the current price for SFMI.
I, for one, would never have imagined that the
price could fall this far. So, I have been
buying. Maybe I am wrong, but I think the current
price is ridiculous, and absurdly cheap.
Look at the stock. Where is it now, compared to
two months ago.
This no longer makes any sense.
Did we HAVE our 15 minutes of fame ?
This is the strangest stock chart I have ever seen.
Bubble up, then down to $ .08 and stop. Flat-line,
no sellers below $ .08. Any buying should lift it
nicely.
I doubt the TA is gagged, but I haven't checked.
Several contacts with management have reiterated
the idea that no new shares are being introduced
to the market, other than Rule 504 and other
restricted ( 1-year ) type securities. No new
shares are hitting the market, nor will they until
at least the late fall of 2008 when restrictions
could be removed. In addition, restricted stock from
the original company's creditors ( DCUT )are still
restricted, and have not been converted to free-trading
shares yet.
The company has not lied on any matters that I
have discussed with them during the last 6 months.
Everything they have said has turned out to be true,
in the end. Until I see something that doubts that
trust, I will continue to take them at their word.
In the meantime, I continue to be impressed with the
press releases. None of them have been BS or fluff-type
releases. It appears that the company is honestly
trying to build something of value.
I will continue to believe until events happen that
cause me to doubt management.
The stock, on the other hand, confuses me. I do not
understand why we are sitting at $ .08. The rights
to the mines are worth at least $ .47 a share, on
a re-sell basis. The only thing that I can figure, is
that there just isn't a large enough shareholder base
yet to provide the stock with support and liquidity.
The last I heard, there were only about 150 - 200
shareholders.
Hopefully, over the next couple of months, we can gain
some traction with market-awareness, and get the price
to where it should be.
Because I talked to management a couple of weeks ago and
my undertanding of the conversation points towards what
I stated in my post. There is no revenue on Silver Falcon's
part of the equation yet. On GoldCorp's side of the equation,
there might be...but, we don't own GoldCorp. How Silver
Falcon will take over the operations was not revealed at the
time. However, I got the distinct impression that no revenue
would be generated until the spring, and that the dumps would
be the first target. The dumps would be the experimental
testing ground for equipment needs, personnel training, and
process design. For anyone to think that Siver Falcon will
generate huge profits during 2008, is wishful thinking. It
won't be until 2009 that any of the mines could be brought
on-line with any volume. That is the nature of mining. With
that said, though, don't under-estimate where this company
is going down the road. Within a few years, this company could
very well be generatig $ 20 - $ 50 million a year in revenue,
just based on the existing mines, the gold present, and a
realistic timeline of things that can be done.
Let's not get ahead of ourselves and place fanciful dilusions
of what can be done. A train pulling 200 coal cars cannot get
up-to-speed in the first mile of track. The track is laid
and the engines are started...now we wait and watch.
$ .08 is extremely cheap for this stock.
I'll agree.
No-one really wants to sell below about $ .07 to $ .08.
Supply is at $ .08 to $ .09.
Any buying will move it up nicely.
Let the company continue issuing substantive PRs, and the
price will eventually take care of itself.
I actually think it worth about $ .45 to $ .65, but that's
just me.
Well, I live here, and I know the mountain.
I think that Rich may be a little confused on 1 or more
issues. He needs to talk to the president of the company.
IR people don't always have the correct information, or
they tend to get confused a little.
There is no mining going on anywhere on War Eagle Mtn
at the moment. The first snows have started and it would
be impossible in the current environment to mine. The
company will need to construct facilities and bring in
equipment before they could work during the winter. Only
snow-mobiles will be able to reach the mountain until about
March. Once they get some snow removal equipment, living
quarters, etc constructed or placed, then there will be
no problem for year-round activity. I would expect these
activities to occur during 2008.
As far as the dumps or the mines are concerned, my
understanding was that they would be targeted for March-
April commencement, next year. In the meantime, the build-up
activities will occur down in the valley.
As far as revenue is concerned, I don't think that Silver
Falcon has booked any revenues yet. I don't see how. They
have, however, probably spent a lot of money, along with the
Loatian group. This last summer was busy, and cost someone a
lot of money. Again, I doubt SFMI has income yet.
I really want to stress that Silver Falcon will NOT become
a $ 10 Million, or $ 50 Million, or $ 200 Million producer
overnight. The year 2008 will probably be an experimental
year, testing equipment on the different dumps and mines.
A lot needs to be done before a juggernaught can exist. Keep
this in the back of your mind when you read posts on this
board.
Other than that, the gold is there; and, Silver Falcon is
going to go and get it. The question will be "How fast" ?
The answer has to be "In a reasonable amount of time...but
years, not months"
They are NOT cash flowing yet. There is no mining on the
mountain right now, because snow is falling. Drilling and
sampling and engineering were undertaken last summer and
fall. At the height of the winter, there could be up to
50 feet of snow. Cash-flow won't start until the spring;
anyone who says otherwise doesn't know the mountain and
reality.
Once structures are in place, next year, they will be able
to work year-round...but, not now. It takes time.
As far as sellers, there are buyers on the opposite side
of the transactions. We are holding ground, and the volume
is decent. Not bad for a company just out of the gate.
Read the PRs. It is obvious that things are advancing with
this company. There have been NO bull-sh.t PRs. All have had
substance. Sit back and relax, it will all come with time.
Piece by piece, they are putting together an organization.
Say what you want about Silver Falcon, but NONE of their press
releases to date have been. fluff. Each one is solid and shows
a progression towards producing a REAL company.
Sooner or later, the market will notice. So far, I am a little
dissappointed at the reaction of the market...but, that's life,
I guess.
Now all we need is buyers.
It's up to the company now.
I understand.
I haven't sold either.
It pisses me off that people can't hold their bladders,
and RUN at the first chance.
Well, it's a self-inflicted wound then.
If people weren't so short-sighted, then the stock would
still be up in the $ .25 range. The minute everyone got
their certificates, they started dumping. Is it a surprise
that the stock tanked ?
Market-makers aren't stupid. If that is what the shareholders
of DCUT want to do, then they are going to take their stock
from them at discount prices.
I hope that everyone that wants out, has, and we can get
back to business.
Good ridance.
People get their certificates, then don't even give the
company a chance.
Just dump.
That's gratitude for ya.
I'll try and explain the difference; and, of course this is
only my opinion, based upon my knowledge of business and the
mining industry.
A lease would have a fixed term, then end. Of course, the
lease terms would have to be adhered to in order to maintain
the lease during the term of the agreement.
A purchase of the rights does not have a fixed term. As long
as the terms of acquisition are maintained, the purchase would
stay valid forever.
As long as Silver Falcon begins processing the ore dumps in
2008, then opens at least ( 1 ) mine each year during the
term of the purchase, they would keep the rights. So, if
4 years into the agreement, they decide to abandon the
mountain for other pastures, they could sell these rights to
some other mining company. This new mining company could then
take over from where Silver Falcon left off, and there is
nothing that GoldCorp can do about it ( and there is nothing
that GoldCorp would want to do about it, for nothing has
changed as far as it is concerned ). Of course, if they
couldn't find anyone to buy the rights, and they stopped
furthering the captial expenditures of the agreement, then
they would lose their invested capital on the mountain during
a default event, and lose the rights and the money they have
paid for them.
On the other hand, a lease could not be resold; and, a lease
would be infinantly cheaper. If Silver Falcon decided to walk
away after 4 years, Silver Falcon would lose all the capital
that they had put into the mountain, with Loatian absorbing
that capital and able to then resell the lease to someone
else.
So, there is a big difference between a lease and a rights
purchase. This was a very smart business decision by Silver
Falcon, and protects Silver Falcon in the future. Of course,
it assumes that Silver Falcon continues to upgrade the
mountain and open the mines, or sells the rights, in order
to have gained the advantage of the rights purchase vs a
lease.
With the costs of the righs, it places a very high incentive
on Silver Falcon to perform. For this reason alone, I think
that the chances of success with Silver Falcon are higher
than normal. Will they succeed ? Who knows. I'm not a fortune
teller.
Just thought I might bring this up.
The Company said in a press release that they BOUGHT the
rights to the mines. They did not acquire a lease, they
bought the RIGHTS. This means that they own them. They could
resell the rights, if need be.
Based upon the price of the rights, these are worth $ .50
a share.
Another reason to believe that the price will be higher
than $ .15 in the future.
I'll go one step further, and repeat what I said in October,
before the name-change occured.
I stated then that I thought anyone who sold at ( post-split
value ) $ .06 or $ .08, was a fool.
My personal opinion is that anyone who sells below $ .20
now, is a fool, and does not understand what Silver Falcon
has concerning War Eagle Mountain.
You have Subway for selling, but they probably don't have
much stock left. I would imagine that a lot of the volume
last week was Subway selling into the buying they produced
from their client list. That is not a big surprise.
The volume on Friday can be tied directly to the fact that
a majority of the shareholders finally got their SFMI shares
from the change-over of DCUT. It is not too surprising that
250,000 shares came out of the woodwork. They had nice
profits from the early October prices. All the sells were in
the range of 5,000 to 10,000 shares ( $ 1,000 to $ 2,000 ).
Not exactly BIG sells. If these shares were bought in early
October by speculators, they only paid $ 100 to $ 800 for
their shares. So, they made some money and sold.
Obviously, the bigger buyers have not sold. And, as a matter
of thought, who was absorbing these sells ? It would not
surprise me to find out that the early October buyers were
also the buyers on Friday.
As far as thinking that the stock could go lower, I doubt
it. The big buyers of October are highly unlikely to sit by
and watch their positions go into losses at prices below
$ .15. At Friday's close, the stock has a cap of $ 5 Million.
Total crap in this market has far higher market caps. I tend
to think that this will be adjusted upwards over the remaining
months of this year.
As far as hard news, I thought Friday's announcement was
rather startling. They have a mini-mill and lab operating.
THAT is BIG news. Mills cost money.
So far, news has been good. I am sure that we will be
pleasantly pleased with announcements over the next few
months.
My personal opinion is that the company is not issuing shares
that can trade, and that the creditor's stock is still
restricted. Proof....none, but it's my feeling.
It wouldn't surprise in the least if the people who were
buying in October, are now sitting back and saying
"Go ahead, give us your stock. We would rather buy your
new SFMI certificates now, than later."
You had to bet that when the old shareholders first had
a chance to sell, some would.
From conversations with the company, they will only sell
shares thru 504 restricted avenues. NO stock from treasury.
No dilution attempts. ALL stock will be restricted for
1 year.
Some selling today doesn't surprise me at all.
With some people just getting their shares, you would
expect some to take some profits. It's been a nice
run. But, if you look at it, how much was really sold ?
30,000 shares ? $ 9,000 ? Not that big of a rush to the
exits, if you ask me. It's held pretty good here in the
$ .25 to $ .35 area.
As for the company,
I assume that they know what they are doing when it comes
to press releases, and the timing of this whole deal. So
far, my hats are off to them. What happens in the future,
though, is anyone's guess. To have gotten this far, is
amazing...no-one can challenge that conclusion.
The dumps or any of the mines would not be touched until
next April-May. Since there is not a year-round operation
on the mountain at the present time, it is closed for the
winter. Approximately 100 feet of snow will fall on the
mining area this winter ( it's at 8,500 feet). Once mining
starts in earnest, though, they can keep the roads and
operation sites clean of the snow, just like any ski resort
does.
In the meantime, I am sure that they are not going to just
sit back and drink beer. Between now and next Spring, I am
sure that there will be plenty of reasons to make us want
to keep our stock.
War Eagle Mountain is not a fantasy. It is real, with real
mines and real gold. Just sit back and let them do their
job. I'm sure that over the next few years, we will be more
than pleased.
Just remember....nothing happens overnight, and this stock
will not just fly to the moon. Every step up will require
confirmation to remain. Every step down will disappoint.
Up, down, up, down. That's the nature of the game.
Now that everyone will basically have their stock in their
accounts, good luck to all....and God bless Silver Falcon.
Press Release
Mini-Mill and Metalurgical Lab completed and operating.
How could the reverse not happen ?
The state of Delaware says the company authorized the reverse.
The transfer agent acknowleges the documents submitted.
NASDAQ approved the reverse and stated so.
The stock charts reflect the 1:200 reverse.
DTC acknowleges the reverse.
Where in this equation would there be a concern that
somehow it wouldn't happen ?
Of course, selling the old DCUT, risks a short buy-back
if the certs are not delivered in time....but, that is
the owners' decision.
My statement concerned the idea that you raised in your
statement about Subway.
You insinuated that there was some delay caused by participants
in the stock so that Subway could dump their shares at your
expense. You were concerned that if you didn't get your
certificates right away, you wouldn't be able to sell them
at the current price and reap a big profit. That somehow,
participants might be conspiring together to prevent you from
selling as fast as you could, and you might end up with a
lower price.
Obviously, with the DTC announcement, that was an unfounded
concern of yours.
Well, well.
I guess the conspiracy theory was wrong.
Those who want to sell, can, tomorrow.
I'll wait and see where the company takes the mountain,
which is why I bought the stock in the first place.
NO, get real.
I do not work for the Company.
I do not work for YES INTERNATIONAL.
I do not work for Subway
I do not work for any brokerage firm
I am the moderator of this board.
I am a shareholder.
It is very suspicious to me that newly born alias'
appear right after SFMI starts trading, and the
first thing raised is bitching and moaning. It also
is suspicious when people who have not posted on this
board, suddenly show up with complaints and nothing
good to say.
I am fair, and will continue to be so. But, bashing
for bashing sake, when there is no reason yet for
bashing, is suspicious.
There are always problems on transitions from one company
to another. We will get thru this period fine.
If Subway has been dumping stock, I hope they continue
to dump more. The more they dump, the higher the price
of the stock goes.
GO SUBWAY.
DUMP MORE.....PLEASE.
I've already noticed that the bitchers, moaners, and bashers
about this stock are recently born IHUB participants; or, are
first-time posters on this board.
I guess that I should factor that into the equation when
I respond. Success brings out the people with other motives.
I like it.
Second Point :
Subway could not have been compensated with SFMI shares.
The SFMI shares have not even been distributed to brokers
yet.
So, they could only have been compensated with DCUT shares,
which means they are in the same boat as the rest of us...
waiting for the transfer to happen.
Let's also take a look at the stock.
Every day of the delay concerning the transfer of the
certs from DCUT to SFMI has seen a higher price for the
stock. It's not like the stock opended high, and has been
falling every day while we wait for our stock.
The delay has helped every one us, so far.
What's your bitch about that ?
Ok.
So your break-even on this stock is $ .02.
The current price is $ .30.
It looks like you have a lot of room for it to fall.
Otherwise, it looks as though you just want to sell,
and are not a long-term holder.
I hope the stock clears today, and you sell. It would
be less a problem for us longer-term holders than to have
to buy your stock at a higher price.
Another point....
What are you REALLY upset about ? You don't own enough
stock at a cheaper price ?
My God, it has only been 4 days since DCUT became SFMI,
and a weekend was between half of those days.
According to you, 4 days means a conspiracy has taken
hold and you have been screwed out of your stock.
Get a life.
4 days.
OH MY GOD. The world has ended.
First, let's get something perfectly straight and clear.
I was here before you.
I was here when no-one even wanted to admit that they
owned this stock.
I have been here thru thick and thin.
You just appeared out of nowhere.
Ask anyone on this board about whether I am fair and
honest in my statments, or pump mercilously with inaccurate
information.
I do not work for the company. I own stock that is
currently locked-up in my brokerage account, but I am
not terribly concerned about it because I know about the
property that this company has gotten the rights to.
Whether I get this stock this week, or get the stock a
year from now, I am not concerned. It will be more valuable
6 months from now, than it is now...and that is because of
production next summer. I KNOW THAT I WILL GET MY STOCK
WITHIN 6 MONTHS...NO PROCESS TAKES THAT LONG. We might be
talking about a few days from now, or at worst a week or
two. Get real.
As far as opinion goes, some of the statements I made
are opinions, some are facts. Some I pieced together
from other peoples' statements, into a coherent and
logical string of events. I called a dozen people, from
the company, to the state of Delaware, to the transfer
agent, and to several brokerage firms. Opinions of
others were included in my narrative. But, it was all
based on research and logical structures.
If you think my statements are wrong, tell me where they
are wrong.
Otherwise, don't accuse me of something you have no basis
for claiming; or, use character assasination against me,
because it is not based on reality and it makes you look
foolish.
What I still don't understand is the total lack of
"notice" in this stock.
The stock is up 700 % in 4 trading days...
Yet,
There are about 6 posters on this board.
No mention of this stock anywhere else on IHUB or Ragingbull.
No mass promotion campaign.
No selling.
No notice whatsoever.
What may turn out to be the biggest gold play of the year
is STILL flying under the radar screen.
WAR EAGLE MOUNTAIN is a real property, with REAL gold, and
has KINROSS as its neighbor.
Low outstanding shares, and a low float.
Rising gold prices, rising oil prices, falling dollar.
How much better could you get ?
Go ask the shareholders of AURC what THEY HAVE ( LOL )
I can't wait to see what the next 2 months bring.
Been calling around the industry.
The shares are not provided by the company.
The company provides the clearing agent and NASDAQ with
the proper documents concerning the name-change and the
reverse split. After approval by the clearing agent, a
CUSIP number is obtained by the clearing agent. With the
CUSIP number provided by the clearing agent, NASDAQ then
approves the documents and a symbol is issued.
The symbol has been issued, therefore all documentation
is correct.
After the symbol is issued, NASDAQ issues a system notice
declaring the symbol, name-change, and reverse split
effective.
This was done on Oct 31, 2007, with an effective date
for the symbol change from DCUT to SFMI on Nov 1, 2007.
The symbol was active on the open of Nov 1, 2007.
With this notice from NASDAQ, the clearing agent then
notifies the DTC system of the changes and issues the new
shares into the system. It is after this process is done that
the brokerage houses then submit their ledger holdings of
the company's stock ( by their customers ) to the DTC for
exchange of the old DCUT into the new SFMI.
THE COMPANY DOES NOT ISSUE NEW SHARES TO SHAREHOLDERS.
Shareholders who have physical certificates, send those
certificates directly to the clearing agent for reissuance
of the new SFMI certificates. Brokerage firms request new
ledger changes for customers directly from the DTC.
The problem now is with the DTC.
Rumors on the street say that the DTC has an imbalance
of positions. The ledger on the DTC does not agree with
the ledgers submitted by the brokers.
TRANSLATION :
A HUGE IMBALANCE OF SHARES BEING REQUESTED, VS EXISTING.
SOMEONE, or SOMEONES, are very short the old DCUT stock,
and the DTC is having a problem issuing the new SFMI
shares. If the DTC is showing 15 Million shares on the
official books for brokers, but the brokers are requesting
20 Million shares, there is a problem. The system cannot
reconcile the difference. Therefore, the system freezes
until someone figures out what to do.....or someone blinks.
Ask yourself why has SFMI shot up nearly 700 % in the last
4 trading days ? Because there is no stock to buy, and
there is a huge short position. Market-makers, or brokers,
however, are still shorting the stock to meet demand...
again, because there is no stock to find and they assume
that they will be able to cover those shorts in time, at
lower prices.
HOWEVER, the time-bomb is ticking.
Somewhere in here, the shorts will have to cover, so that
the DTC can reconcile their books and issue the SFMI shares to
the brokerages. This includes both the old shorts on DCUT,
and the new shorts on SFMI.
Who blinks first, when, and at what price ?
How HIGH is HIGH ?
This is fun.
Look upon it as a blessing. I do.
By the time we get our certificates in our accounts, the
stock will be over $ 1. In the meantime, it keeps me from
being stupid and taking profits at these levels. If I had
had stock, I would have already tried to sell at $ .15,
$ .20, and $ .25.........and would have regretted it.
Look at the bright side.
There is more news coming.
I think people are worrying too much. Things will work out.
I think if you check with the www.pinksheets.com site,
it states it there. Otherwise, there has been no PR
stating the fact of the reverse. It just happened, and
the brokerage accounts will reflect that fact soon.
By the way, you can still trade your old DCUT, now
SFMI. Just call your broker and do a verbal order, vs
a on-line entry order. Bug your broker about what is
taking them so long to transfer over to the new SFMI.
IT IS A BACK OFFICE PROBLEM about the certificates,
not a company or transfer agent problem. LAZY back offices.
But, the reverse was 1:200. Just figure what you had
prior to the name change, divide by 200, and that is
what you have now of SFMI.
There is no hanky panky going on about the certs, the
name-change, the reverse, or the symbol change. I have
talked to my broker and he says all of the above HAS
happened, and they are working on journaling my account
to make it correct.
By the way, volume still increasing, and the price is
back near the high.
GO SFMI.......