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Central Missouri | the short would have to work in concert with another entity, i.e. someone who knows the value of the properties and wants to buy it on the cheap. so a major gold company comes to the short and says you short this thing and drive the stock down. While you are doin that we will be accumulating in these 6 or however many entities. once we have the position we want we will then with our publicly traded entity offer a buy-out to the demoralized shareholders at say 5 bucks a share. And we will pay you a cash amount equal to say a 40% return on your investment above and beyond the cash you may have lost shorting. These operations are done in the stock and options on the stock. Shorting is done with and w/o borrowing the shares. If you short a companies stock you have 3 days to borrow the shares but naked shorting is rampant in the market these days. If you don't borrow stock in 3 days its called failure to deliver and these figures are available on the web.
Now that looks good to a shareholder who has just watched the share price go from 5 to 2.5 and they vote for the take-over. But in effect if one knows what the true value of the properties are it is a terrible deal.
So whom would want to do this ?? That is the big question and candidates are hedge funds, large established mining firms that are already operating in the country or a firm that has a royalty agreement with TRX that can buy the whole company for less than what the royalties will cost over time.
Just some thoughts. | |
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Jim Sinclair Meeting
