This may not be totally logical (hopefully worth the read), but based on the details given in the bankruptcy filings reported, they knocked out over $31 million in debt right off the top.
Based on 139 million shares outstanding with an 81 million share float, I would say that they are 22 cents per share better than where they were prior to their voluntary filing last year when they were trading at .04/.05. Add 22 cents to .04/.05 and you have a QUARTER plus or minus.
They voluntarily filed because they had dormant plans in the pipeline for when gold woke back up out of the multi-year down reaction in this still unfolding Grand Super Cycle Bull as we are headed to $4,000-$5,000 spot gold and $150-$250+ spot silver.
Management knew that the past several years was only a temporary downside reaction; a return to the bull market move was inevitable based on global government credit mismanagement (Brexit and Trump's increasing popularity are confirmations of the people waking up, FINALLY!!!). Huge money is flowing into anything gold related as you will see the uptrend continue.
The worm has now turned...perfect timing to come out of bankruptcy. The public losing confidence in government was/is mandatory for gold/silver to resume the uptrend. It was just a matter of SFEG surviving without incurring more toxic debt. Management did not know whether the lull would last another year or three, so they did the only thing possible to give them a chance of surviving for future plans to unfold.
I personally see this stock getting to the .20-.25 in the next couple of months. Not on anything concrete other than melting up with the bull market action just based on future hypothetical prospects regardless of what they may be.
Retail investors are buying any cheapy gold mining stocks that they can get their hands on since many of the high quality, known stories have already moved 500-1,000%+ since January/February.
Retail investors who have missed the first 6 months of this bull move are clamoring to buy anything gold related that is under 25 cents. I see it all over the place with crappy pump and dump gold stocks in the .10-.15 range.
SFEG ACTUALLY HAS PROSPECTS COMING...and DECENT ones that have been waiting in the wings. Just a feeling...wink, wink.
Once SFEG's actual management plan unfolds going forward, we are looking at $1.00-$1.50+++ in the next year or so as gold/silver continue to gain momentum in this resumption of the Grand Bull Market that began back in 1999/2001 which will continue into the 2018-2020 timeframe and probably as far as 2023.
Lock and load. Buy now while you still can below .20-.25. It's going to continue to inch up while climbing the wall of worry and curiosity. I say we hit .22 by the time management reveals the actual plans. More and more people are just throwing capital at the .10-.15 range gold stocks regardless of due diligence. This will continue to melt up. Bank on it!
