Over here in camp MNM we love healthy debate mate.
It is what discussion forums are about - "discussion" whether that be of the same opinion as yours or opposite.
There are a number of factors I believe for current SP...some will agree, some won't...all cool.
1) Macro markets have been kicked about and spec stocks are the first to get slammed, MNM is not immune to this. The GFC, Euro issues and US printing money hand over fist has got a lot of investors running for the hills - market confidence is way down.
2) Many investors are simply out of the spec space or out of the market altogether...less cash floating around, means less buyers which makes it a sellers market.
3) Coal is (was) on the nose and prices have slid and brown coal is even more on the nose and, without BCE techs at commercially proven stage in Oz, a unknown/uncertainty...therefore market does not value BM or LV.
4) MNM has MtM, but the proposed national park has put a dint in many investors confidence. Even with the ILUA and relationship with Djungan on good terms, still risky even though the black coal is there and will MNM get access to the mesa? MtM project discounted.
5) MNM has gold and silver, but not producing, so the market at large has discounted these assets.
6) Whilst we have a management team that are progressing these projects, they are not high on getting the message out there...this will change though as the projects are developed up. Personally I prefer this to promising the world and delivering little...but it doesn't get MNM known in the short term.
7) FT has stuffed the SP around. MNM needs cash, so a FT like facility is the devil you know scenario. Holders will complain about CRs and not having a chance to get shares at SI prices, but as soon as a CR is mentioned, SP gets smashed down and below those levels making the public CR fruitless.
All the above combine to see the SP where it is at...the question is will it stay that way...personally, I think not - hence the reason I'm long MNM.
...and probably many other reasons as well.
Cheers K
MNM Price at posting:
5.9¢ Sentiment: LT Buy Disclosure: Held
