cheap as chips, page-13

re: offer Syd

The upside, really depends on many factors.

the comment made on here that the directors suggested at the AGM that after Puntland arrangement have been made that company should be valued around 100-200 million suggests that share price should go to between 10-20 cents per share. being that after the rights issue and taking all other issues into consideration (though not taking options into consideration - can't really do that until closer to the expiration time .. they might not ever be exercised) they'll have close to a billion shares on issue which is huge.

Ordinarily I would steer away from a speccy with such a large number of shares on issue, however, on this occasion the value (even in the ground) of the assets RRS may be sitting on are very substantial, therefore I'm not so concerned about the major dilution factor.

IF those assets turn into money, there is something like 500 million barrels of oil, and a whole list of other minerals which can be mined that a valuation of half a billion within a yr could be reasonable, once profitable it could go far beyond that, and thats without even taking peru into consideration.

so my price target is between 10-20 cents within 3 months with lots of volatility on the way up and inbetween those two values (where i'll be trading a lot), I've already foregone thousands on this stock from not trading instead of just holding like I've done. but i don't think anything will happen until about 2nd week of january, maybe even the 3rd week.

all just my opinion.