Replies to post #59221 on Banro Corp. fka BAA

[trunkmonk]

Let's hope the invested in it for the sake of what it is, a very good mining company investment. not for motives that burn out the company and move on.

[CrazyDonkey]

How much of the current price was due to the debt-repayment issues and the threat of BK? The other issues have been political instability in Kinshasha (the DRC is also a Banro partner) and a sagging price for gold. Resolve these issues and we're back in the .30's and .40's, if not much higher, it seems to me. Yes, people will likely take profits going back up. Price can be as much a matter of sentiment and expectation as value (as BAA's low book-value ratio, even with dilution, shows).

Gold mining is a capital-intensive business. Until longer-term profitability is achieved, dilution is inevitable, one way or another, it seems to me.

[DownWithPumpers]

I wasn't going to post an opinion, but in the interest of equal time.

Banro issued preferred shares when the stock was at 60 cents. They paid the preferred shareholders tons of money over the last three years, and the stock sunk until they were able to convert their shares at 10.7 cents.

Even worse because of the required bond principal repayments starting in 2019, the interest payments are going to be higher than they are today.

Current shareholders getting 30% ownership in a "recapitalized" company that will have higher debt payments than today seems like a company that's not being run in the best interest of today's shareholders.