The other key issue with this stock is that it will be consistently diluted each and every time they buyout a new property by issuing stock. So expect the price to languish in the 25 cent area +/- a dime for most of 2016.
A couple of months ago there were only 100 million shares outstanding. Now there are OVER 300 Million shares with these past few acquisitions. I kind of wish they would borrow cash from Majestic Silver and buy distressed properties outright (and only issue stock back to AG in lieu of paying cash interest on the debt) rather than fully diluting current shareholders on each and every purchase as it seems they are continuing to do.
This is why this stock should be bought in a dollar cost averaging format rather than a lump sum initial investment to avoid the dilution effect. Buy a specific $ amount each and every month or specific period of time so that you don't get stuck at the pre-dilution prices. Until and unless gold bottoms which won't be for a while, this stock is going to have a hard time going anywhere positive, albeit their portfolio will be growing nicely. Just don't expect to get any return on your initial investment until early 2017 at best.
I just see Keith buying up another 3-5 properties in 2016 like he suggests in his latest interview, and I am worried that we will end up with 750MM or 1 Billion shares outstanding. Yikes! Major share dilution.
Since he intends to build a BILLION dollar company as he suggests doing again like his past successes, if we end up with 1 Billion shares outstanding, then we are looking at a $1.00 stock. Not as great as it originally seemed when I first heard about the company a couple of months ago. I was salivating at the idea of a $10+ stock on 100MM shares. Now, I see that is not realistic unless they change their strategy on financing acquisitions.
Caveat Emptor.
