General comments/chat, page-30426

Shortman is showing that approx. 2% of ADN's shares (approx 52 million shares) are currently short sold. Whilst I'm unsure of the exact mechanics, IMO when the MEP shares are exchanged for ADN shares, many of these short positions will close out, either because the MEP holders themselves are short (and will receive ADN shares in exchange for their MEP's which they will then use to deliver into their short ADN positions) or via on-market (and possibly off market) purchase of ADN shares sold by former MEP holders who have received ADN shares that they don't really want (those MEP holders who are mainly holding MEP for the base metal in specie distribution, not for the ADN allocation).

Post takeover, ADN will have more than 3 billion shares on issue and the market cap at $0.19 will be $600 million plus. I just find it amazing that investors see this as a good risk versus reward play. $600 million is a significant market cap and dwarfs many producers and near producers who are far more advanced on the road to production than ADN. Also, you have to ask yourself the question What is the upside?. With the company already capitalised at $600 million plus, it's a lot more difficult to double your money than with a co valued at $20 - 40 million.

Anyway, time will tell. I may be proven unimaginative and short sighted as ADN starts selling lucrative new and innovative product streams. Alternatively, my old school fundamental approach might prove reliable.

Lets see where we are in 12 months time.

GLTA & DYOR