The first event that happened to lead me to Sarissa was Scott Keevil coming on board. I saw he was running a tight ship. He doesn’t push out PR’s with fluff like other penny stocks that are trying to cash in. I don’t want or need the company sending out fluff PR’s, I only want real news and I am willing to wait for it. Over the four years since I’ve been watching this company, he has only sold a minor amount of company shares, which shows that he is not using the company as his personal checking account. If I recall correctly, he has lent the company $200,000. Another prominent event was Dalhman Rose coming in to find strategic financing for the company. I have not recalled another penny stock trading this low using an investment bank to acquire financing. Most penny stocks would just dilute current shareholders and keep selling shares increasing the float to finance the company or fund a lavish lifestyle for management. Maximizing the capital structure is in the best interests of shareholders and Sarissa management has exceeded all my expectations so far.
This management team is running the company well and I would have invested in this company if it was selling diapers, yo-yos, or oranges, as management is what makes a company great and superb agents for shareholders. BUT here’s the kicker, the company has potentially billions of dollars in metals. Let’s compare Sarissa to another company Dalhman Rose helped raised financing for, Molycorp. Molycorp is another mining company in developmental phase and started mining in December 2010. The company has been losing money but it’s currently valued at $5 billion. Molycorp just received $130 million in financing last month. According to Yahoo Finance, Sarissa has a market cap of $40.5 million. Dalhman sees the strategic value in companies and unlocks it with the appropriate financing.
Playing devil’s advocate, what I don’t like about the company is that the company needs financing to realize the value of their holdings. That is, if there really is value. I’m not a mining expert and until the niobium and gold is out of the ground and a customer pays cash for it, I will be skeptical. I don’t care how many NI reports come out. Talk is cheap, cash is king.
In short, I feel that the rewards outweigh the risks. There is a reason why this is a penny stock and most penny stocks are garbage but I feel this company is different and should be valued far higher than its current share price. Good luck to all and lets party at a dollar!
