I agree that many stocks that have been beaten up COULD come back, but in order to do that there has to be at least a couple of things going for it-confidence in the management, and an underlying asset that can be developed.In this case-
First-there is NO CONFIDENCE in the management,based on a number of factors-lack of communication, lack of fiscal responsability and failure to meet any deadlines,or prooduction estimates-combined with generously rewarding themselves,even when the company coffers are running dry.Not good,by any stretch of the imagination
Second-the ore is low grade and of limited supply,this is NOT some high grade mother lode-They have never even come close to meeting their own production estimates so no matter what happens, the chances of turning it around are remote
Third-the stock has ALREADY been promoted,and ALREADY diluted,attracting new investors is virtually impossable under the circumstances when there are so many other ''great opportunities ''to put your nickle into.If this was such a ''great opportunity-wouldn't you expect the mining community and investment letters to be taking them seriously?THEY'RE NOT
Believe what you want ,wish what you like ,but the shareprice isn't lying ,its sending a message loud and clear-THREE STRIKES and You're OUT
Give your head a shake-this is now a SALVAGE OPERATION,with people desperately hoping for an opportunity to get OUT,not IN
