you say: 1. I would be very happy if ANYBODY on this SDL thread would give me ANY facts that could support the massive MC, orf dispute my comments....nobody has yet come up with anything apart from things like "the instos are buying" etc blah..blah...well consider: a. instos are in every listed stock...fact. b. instos were in One Tel, Enron. etc etc
Answer: The market cap is where it is simply because of speculation. Anticipation of finding and developing a world class resource is what is driving this thing. I thought you would have known that! When you analyse a stock do you look backward or forward when coming up with your valuation?
You say: 2.Nobody here has any idea of anybody's net worth...so ridiculing because of perceived net worth is patent nonesense...I find it amusing that people would even consider such a demeaning and irrelevant approach.
Answer: agreed.
You Say: 3.Financial advisors are paid...think about it...they are not geniuses. Even the broker's analysis is deeply flawed.
Answer: Yes of course they are paid by their employer. How long do you think they would remain employed and be remunerated if their success rate dropped? Look to the recent sacking of the head of Bear Stearns for your answer. The only research I have seen rates SDL as a Spec Buy and it still is a Spec Buy. Can you quantify, quoting from printed sources what was flawed in the broker research?
You Say: 4. Exactly how will SDL fund the $2.5bn capex...if you cant explain that ...you had better SELL...and dont bother with the silly "so and so is buying, so it must be good" nonesense...do some research yourself.
Answer: how many options do you want regarding funding? 1. Would you entertain the thought that a consortium of steel producers take a stake in return for funding the capex? 2. Is it an out of this world type of propostion to think that a debt facility could be established should a sufficient size of JORC reserve be proven? 3. Failing the above two scenarios is it a possibility that a combination of the two is used to ensure SDL keeps a reasonable size free carried piece of the project?
If any of this does not make sense please post a response and I will reply. Cheers Belkin p.s. you have a BUY in your sentiment box. You might want to change that to a SELL to reflect your post!
SDL Price at posting:
0.0¢ Sentiment: Hold Disclosure: Held
