Market Analysis, Investments and Trades: For Rent

[TraderRich]

MDMN Shareholder update with interpretation...

http://www.medinah-minerals.com/Q_A_080511.html

Quote:
Our JVA partners state that they are continuing their efforts to complete their responsibilities under the terms and conditions of the contract so as to finally release the expected funds.


Interpretation: There is nothing wrong with the deal. The partnerS have not pushed away from the table. On the contrary, they are working to accomplish what is necessary to RELEASE the EXPECTED funds. The word "RELEASE" tells me that the funds are in a form of escrow account being held perhaps by a third party entity. If this were not the case, then the word "release" would not be used and instead replaced with the word "transfer", imo.

Quote:
Management of Medinah Minerals, Inc. (USA) have reported what is required in conformance to United States security laws regulating a public entity. There is much postulation, speculation and frustration occurring amongst shareholders which is fueled in major part by creative misinformation and negative postings in such venues as chat rooms, etc. Let us repeat this warning, “ONLY INFORMATION CONTAINED ON THE OFFICIAL COMPANY WEBSITE IS FACTUAL. PLEASE DISREGARD ALL OTHER SPECULATIVE AND NON-CREDIBLE RHETORIC FOUND ON NON-AUTHORIZED WEBSITES.”


Interpretation: If shareholders would simply put the majority of attention and emphasis on the official updates instead of on the day to day rumors/innuendo/speculation you would probably be much happier and at ease about things, as I personally am. No, I'm not happy with some of the turns this has taken and I'm certainly not pleased with how long it has taken, but people put waaaay too much emphasis on rumors and excited snippets of nothingness being posted.

Quote:
As articulated in our July 21, 2011 Shareholder Update, the extension of the closing date of the contract granted by Señor Quijano continues. This extension was not granted lightly and is required in order that the JVA partners have time to conclude their internal structuring legally in Chile.


Interpretation: The extension was granted by JJ, not the other way around. WE have power here, not the partnerS. JJ has alternatives but likes these partnerS and this deal and so was kind enough to give them more time to take care of what they need to take care of instead of saying "adios" and calling the next potential partner in line. The partnerS need more time to finish "internal structuring", which I presume deals with the legalities of doing mining business in Chile. If the deal were dying I seriously doubt that this would be going on.

Quote:
Many of these types of contracts have been entered into in Chile over the years and many have taken much longer, but the unforeseen extended period is difficult for all concerned.


Interpretation: What we're experiencing SUCKS, but it's not unusual in Chile.

Quote:
It is complicated involving verification of property titles, legality issues for foreign companies, ongoing work commitments, funding contracts with other professional groups, deciphering of areas of responsibility assigned to the various signatories etc., etc. Each of these areas requires its own negotiation and agreement that must be contained in the final documents. So, for those who are concerned that nothing is going on, rest assured, nothing could be farther from the truth. The difficulty is that we cannot disclose the issues or we risk violating the terms of the Non-Disclosure.


Herein lies the MEAT that some people aren't tasting. (Some of you have been chewing on so much hot air here for years that you probably wouldn't know meat if it were shoved down your throats. Sorry, but it's true). Try to go back and read each of those things after you've opened your eyes more and dropped the perceived need to see dates, names and dollar signs. There's a lot there if you take the time to consider it, and it doesn't really require much explanation at all.

We, as a Board of Directors, are doing everything humanly possible to try and complete the funding provisions with our JVA partners.

Quote:
It should be further noted that Medinah Minerals, Inc. (USA) is not exempt from worldwide financial calamities. Over the course of the last few weeks, various worldwide markets have suffered forms of catastrophic meltdowns. Various shareholders have reported that they have margined accounts of losing stock positions and have had their plus holdings of Medinah shares sold in order to satisfy margin shortfall commitments to clear indebtedness in their accounts. One year ago today, August 5, 2010, MDMN shares were trading at $.019. In these troubling economic times Market Makers have a “field day” with the fear-mongering aspects of a volatile market. Many games are being played by profit-only minded entities that care little for suffering shareholders of OTC companies such as MDMN. We have continued to report that Medinah Minerals, Inc. (USA), symbol MDMN, is not a promoted or featured stock by any investor relations service. We do not advocate the buying, selling, trading, or holding of Medinah stock. Our shares are completely free-trading and shareholders are free to do “what they wish” with their MDMN holdings.


Interpretation: They are explaining the reasons for the recent selloff. Some shareholders (stupidly, imo) held their MDMN investments in margin accounts, got their teets in the wringer on market drops, and their broker went in and liquidated portions of their assets in order to protect themselves from loss. Depending on your broker, you have no say in what gets sold in a margin call, and often times they don't take the time to get the best price. Sometimes they don't even inform you when they do it. They just grab what they want and liquidate willy-nilly until your account is back to being capitalized positively and they have the money back that you borrowed. If any of you don't want this to happen to you, DON'T HOLD YOUR SHARES IN A MARGIN ACCOUNT OR MAKE CERTAIN YOU ARE NOT AT RISK FOR A CALL. The company is also reiterating that they are not involved in any promotions that may be going on with MDMN, so that you know that they are not involved in a pump & dump with promoters.

Our goal as a Junior Mining EXPLORATION Company has been to seek and commit to a financing or partnering entity to continue the process of exploration leading to production of the Alto de Lipangue holding. We have endeavored over several years to complete this arduous process, but as yet have not finalized the funding portion of any Joint Venture Agreement.

Quote:
At each of the last two Medinah Minerals, Inc. (USA) Annual General Meetings, MDMN shareholders voted to give Señor Quijano the legal basis to negotiate the best deal possible on behalf of Medinah’s shareholders. Señor Quijano, representing Medinah Minerals (Chile) S.A. and Medinah Minerals, Inc. (USA), has satisfactorily completed every matter requested by the JVA partners and we continue to “anxiously” await the monetary release. Señor Quijano states that this agreement is the most optimum long-term deal for Medinah Minerals (Chile) S.A., and MDMN as a 50% partnering beneficiary.


Interpretation: Shareholders had two opportunities, and the majority voted affirmatively both times, to give JJ the freedom, the power and the TRUST to bring us the best deal and he believes that he has done so. I personally like the addition of the "LONG-TERM", because that's what this investment is. This is not a stinky pinky trade to make a 5-bagger and bail... at least it obviously isn't for JJ and company. This is abundantly obvious.

Quote:
Management is confident that we should receive the finality news that the “eagle has landed”.


Interpretation:

Quote:
However, until we can unequivocally report that the funds are liquid and in our possession, the Joint Venture Agreement is “not complete.” We desire to complete this funding as much as all of the shareholders and we share your frustrations. Management continues to fulfill its obligations to the Company and shareholders and will continue to endeavor through “all means necessary” to try and bring this matter to a successful conclusion.


Interpretation: "Complete this funding". Funding is the end game. They empathize with you. They want this done to and are doing everything they can not only for you but for themselves.

Again, I am very pleased with this update and I trust that JJ and management will get'r done. I'm the meantime I am anxious and sharing some of everyone's impatience but I sure as hell am not worried about anything I've seen coming from the official company updates/q&a's. For me personally, 1.6 million invested here is too much money to only want to see the bright side of things. As a trader I know the pain that comes from using "positive thinking" with trades and investments. I can assure you that I am not doing that here, but then if you're a responsible, competent investor then you really don't care what I or anyone else thinks about your investment, imo.

Have a great weekend all. I'm way late for the beach!

Rich



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I am not a licensed investment advisor. My posts are my opinion and are never to be construed as investment advice. I assume no responsibility for any action taken as a result of my posted opinions.