Supatcha Resources Inc. (SAEI)

[SpunjHamr]

SAEI.OB I can assure you that nobody is attacking you personally. The stated reason for the forward split was to allow more investors. What is the mystery? It is in the PRs. (Wasted time, again.) Yes they are repurchasing shares to combat shorts. What is the mystery? It is in the PR. (Wasted time, again.)

You make many convenient assumptions to accompany the numbers of which you only have a keyhole glimpses.

This particular statement is ludicrous on it's face because you assume a finite time frame that only you get to assign:

If the Insiders own 53% (Restricted Shares) these shares are off-limits to the buyback so what exactly are they planning to buy? Market cap today is $7.9 Million and was $3 Million at the time of the announcement. (47% of 7.9 Million = $3.7 Million so they would be buying back 81% of the float). But when they announced the buyback the float had a value of 47% of 3 Million or $1.4 Million. How can you buy back $3 Million of only $1.4 available? Answer: You can’t unless you pump the PPS.

I only use logic for good purposes not to make fallacious arguments. The faulty logic of the above statement can only be summarized as "obtuse with a purpose".

As we have told you on numerous occasions, the Ukrainians have also been cited as potential investors in the company to the tune of $3.5 million. What is so confusing about that? Well, I can see some of your confusion, since you nor I have all of the facts. However, their ability to follow through on what they say they will do is well proven.

The last buyback I say had the company claim to buy back up to 50% of the float. They too were a money losing company and bought back 1% while diluting another 50%. The 1% buyback was to get out of regulatory trouble because of the way everything was worded.

Off topic and anecdotal. Please stick to this company.

Companies that invest their time and energy into share structure games without developing the business are major red flags. Buybacks belong to companies that are cash flow positive, not cash flow negative. Buy backs in cash flow negative companies are gimmicks to create a pump. It worked I can see.

As I have said before, there are not enough shares to go around. I don't really care if you or anybody else, for that matter, invests here. (Unless they are my friends then I want them to get as much as possible.) Flippers will come and go and people will do what they do to try to depress the price while we are awaiting the mineral reports. The company has stated that they are willing to buy back shares to support the price. If you wish to characterize that as pumping there is a fault to your logic. Fewer shares and a buyback will keep the price high not initiate a dump which is what defines a "pump".

For all we know the investors wanted the additional shares as insurance against barren drillings. Now that the results are coming in, the situation has changed drastically. Perhaps the company really wants to retire shares to raise the value of the 53% that they own and increase that percentage even more. They are the best judges of what they have coming and wanting more of the pie is greedy and smart and totally understandable. That is of benefit to the shareholders as well so I have not the slightest problem with that. If they award the shares that they buy to angel investors who represent local interests, I think that is grand too. I am very appreciative of the opportunity that the Ukrainians have given us.

So where does this money come from? With no operations up and running and with no revenues, the only viable option is financing. Why finance shares to buy back shares? They had $2.2 Million in cash as of August but have yet to mine gold so they still have zero revenues. That means they would have to borrow another $800K and drain their cash to buy back as they say they plan to. How then do they plan on mining gold? Costs money and the financing is already depleted by 50%

The issues that you bring up from the past are inconsequential in light of developments and the new issues are beneficial to longs no matter how you cut it.

Buybacks belong to companies that are cash flow positive, not cash flow negative. Buy backs in cash flow negative companies are gimmicks to create a pump. It worked I can see

Buybacks are not the property of any particular company. You make many statements assigning rules that create some reality which you then define. As I said before, this is circular logic and fallible.