"URM is just one small stock amongst others we can scale into. Let it go to 1c. Get 100 times more stock there with same outlay. An infinitesimal move above 1c"
You forgot to mention erkan2008 that when URM comes to cap raising and the sp is trading at 1¢ (as opposed to 10¢), a minimum dilution factor of 10:1 kicks in.
A) How many shares do you think will be on issue by 2010?
B) What will be the true vale of your 1¢ shares by 2010?
Bear in mind that URM presently has very minimal dilution and should the directors need to do insto cap raising at a time when the sp is trading at 1¢, the placement would need to be at a discount - say .75¢.
So, to raise $4.5m, they would need to issue 600m shares and that my friend would increase the dilution 10 fold.
How is your 1¢ stock looking now?
Bear in mind that from a corporate perspective, they are not permitted to issue more than 15% of the total shares on issue in any given financial year. (unless they have sought prior shareholder approval)
URM Price at posting:
0.0¢ Sentiment: Buy Disclosure: Held
