Replies to post #494 on Sovereign Exploration Associates (fka SVXP)

[agapespreader]

I think the press release said 29 million shares outstanding. The old 52 week low, adjusted for the R/S, is 20 cents. I'm wondering if the R/S was done to issue more shares at a much higher price. If so, look for it to go below 20 cents.

[Buckey]

R/S companies have a history of isssing tons of new shares and you end up with not even enough shares to sell to pay commish - been there done that at least 10 times

[Crameratlarge]

It's not 200 million. Around 29 million.
There are 2 possibilities here:
1) SVXA used R/S to cover the fact the stock price is falling which is usually the case for companies practicing R/S. I don't believe this is true for SVXA.
2) The value of the business is hard to figure out especially given the short history of the company. It's hard to use DCF because given its transparency of its financial statements, it's hard to forecast out its cashflows. Also relative multiples don't work well because its competitors are not similar in terms of market cap or business models. I'd say it's undervalued right now. Major positives are first the company has 90% of the property right to the items dicovered at the Canada Site. SVXA will pocket 90% of the revenue from the auction of these items. Second more projects are underway plus the CC a week from now.