Well boys. I'm out.
Been a good ride, found a better value to jump into today.
Hope they don't tank the Crap out of Gold (like I know they are about to.....shhh)
My concerns that led me to move into another investment.....
Simple, Do you ever wonder why Banro is even still listed on the NYSE with a stock price of below 1.00?
If you read the annual report, it explains that the NYSE makes exceptions for Banro but does not explicitely say what those exceptions are based upon in order to retain it's listing.
Well, lets say ( with it's new shanghai exchange) decides to tank gold so that it's China gold can pressure gold mines into selling cheap. if gold drops below 1200 (the number Banro uses to base their balance sheet on, oh and their assets) and suddenly you wake up 2 weeks from now and gold is say....950 per ounce, Banro will then have to base their balance sheets and assets on 900 per ounce gold.
What if the "new" numbers don't meet the exception rules for the NYSE listing then?
Ruh roh!! Now the BOD will have justification to Reverse split the stock, to get price back of 1.00, Im guessing 10 to 1 is about right.
It would also allow them to sell warrants (further diluting the stock) after the reverse split.
Yadda yadda, just too much dependance on Gold price here for my to feel good.
However boys, I'll keep it on my watch list, and if she dives way down again, I might pick her up again.
Cheers!!
