Much Higher Prices are Within Reach!
A month or so ago the TNGL price spiked up to 19 cents. My phone was ringing off the hook with clients, friends and family who were asking “is it too late for me to get in on that Tonogold!” The excitement was huge. But the volume was so light that the very next day everything retraced back to five and a half cents. Everyone lost interest. What many people may not realize is that that spike to 19 cents was on 1,000 shares being traded. 1,000 shares at 19 cents only comes to $190. On any given day there are only a few thousand shares available at the “ask” at higher prices.
Look at a Level 2 screen on any given day and you will find maybe 10,000 shares at near ten cents, another ten thousand at an ask of 19 cents, then 5 or 10 thousand at fifty cents; and sometimes another 10 thousand at ninety cents or a dollar. My point is that if we had some volume through awareness and promotion, we would likely already be at much higher numbers.
Imagine how much easier it would be to raise private placement money if the stock price were at 50 cents or higher, with volume. At 50 cents we could raise the private placement entry price to 40 cents. We could raise the same amount of money by issuing a lot fewer new shares. There by diluting the current shareholders a lot less. Remember as it stands now, current shareholders own 100% of TNGL. After we do this iron ore deal current shareholders will only own 19% of TNGL stock. (Read the 8 May 2014 PR) Current shareholders are getting diluted twice, once by the iron ore deal and again by the 10/1 reverse split. The failure to raise the stock price on good volume has diluted our positions. TNGL management has generously paid themselves while they are diluting the shareholders. This has cost us money. If we were telling the investment world about our company we could already be at much higher prices than we are now.
Don’t get me wrong. I am extremely bullish on Tonogold. I believe that everything in the TNGL world is about to change. Look at the Tonogold shareholders meeting on 27 June 2014 as the launch date for a whole new chapter in Tonogold’s history. We are about to go to the moon.
