i know that a place 37 clicks up the road has been taken over. Do you think that ARD is also being taken over??. Shiny
Thanks, I totally missed that. Ok, so does that mean they are out of cash and they need more so are diluting shares to issue more? Shiny
Yes, they only had $381k cash at the end of March Quarter. Almost all these companies are like this multiple times before they stop getting enough support from shareholders, are diluted to billions of shares, then death spiral to the delisted boneyard. Usually can be spun out for more than a decade and board and managements do quite well out of them. You find the cashflow reports of companies like this at the end of the activities report (appendix 5B). At page two of the appendix you'll see line 1.22 cash at end of quarter = $381k. On page 3 you'll see total for estimated cash outflows for next Quarter and the figure is $219k, so they're virtually broke and management has sprung into action. http://www.stocknessmonster.com/news-item?S=ARD&E=ASX&N=717884
Yes, small cap directors milk it for all they can, for as long as possible. If only they spend as much time running the company than they do preparing for capital raising.
And i really thought they looked like a "good" place to put some $$$ two years ago, and that as their reports were saying they would dig soon and get some metals!!! Well they have been wasting so much time... why don't they want to dig and get some metals out and produce money for their company?? I don't get it....
Cobar Consolidated Resources (CCU) - I lost count of the number of capital raisings before they went broke - shareholders lost all their money See http://forums.silverstackers.com/topic-39505-cobar-ccu.html
If you look around there are many companies like this. "Good prospects" that they are doing "feasibility studies" on and the mining will begin "real soon now". But you need to look back at past years reports as well. One I looked at once had been basically saying the same thing about the same potential mine for over 5 years. The only thing these companies are mining is their shareholders to pay the directors their fees each year and not much else.
A few of us were doing very well when silver was heading to $50 with these companies. Turns out almost all of them were and still are rubbish. Taught me a lot about 'value' I guess...
