Replies to post #17284 on Copper King Mining Corporation fka CPRKQ

[FFF]

JTF,

I agree. If the company is going to be aggressive in buying back stock, they would actually benefit from a lower stock price - and staying pink for a while could actually help that. They had to issue a lot of shares to raise the capital to complete the mill and this caused a lot of inside shareholders to have a lesser percentage of ownership of the company. I would think that Dotson and any other insider shareholders would love to see an aggressive buy back program that would strengthen their ownership percentage in the company. Giving up dividends to buy back stock in the short term could be very beneficial to shareholders in the long run.

I don't know if the long term plan is to keep the company or to try and sell it, but if it ever does get sold the sale price per share would be much higher if they could significantly reduce the number of outstanding shares.

[FFF]

JTF,

Do you know if they are finding high concentrations of gold and silver that are way above what they originally thought was there?

The forward looking financial statements that I have seen use copper prices of $2.75-$3.50 (currently around $1.60), gold at $500-600, and silver at $10-13.

They also show that copper revenue is expected to be 20 times that of the gold revenue, and about 10x that of the silver revenue. So unless they have hit a motherload of gold, I am not sure how a 20-25% increase in the price of gold is going to offset a 40-50% decrease in the copper prices from their projections.

FFF