Selling for $2 not loki like a good Idea to me. The train tracks...

Selling for $2 not loki like a good Idea to me.

The train tracks are worth more than $2 a share as scrap.

You would be giving away the worlds largest sand mining dredge. worlds best mineral sands treatment plants in Senegal and Norway, Trains for the tracks, a power Station, Port facilities and a massive rehabilitation set up which follows the dredge as it moves forward through the dunes so no massive end of project clean up and of course all the intangibles that make all those toys work..

The theme of the Noosa convention was probably "he who dies with the most toys wins" and a few of the punters saw the videos of all those toys and wanted a bit of the action which made the refresh button such a joy on Friday..

The joint venture only completed the big capital spend that cost $6 a share in January. Lets see what happens now that the cash starts flowing in rather than out.. The directors reckoned the NPV of future cash flow in todays depressed price market is only worth $2.57 a share.

When the share price gets an up kick and MDL is readmitted progressively to the S&P indices the same brainless institutions that were covenant driven to dump the shares and trash the price as MDL was progressively booted out of all the indexes will be forced back in by the same covenants and they will drive the price mindlessly up in the same way they drove it mindlessly down. They drove an underlying value of $2.57 down to 17c so they will not see the madness in driving it up to who knows where.

Have a look at SBM which got kicked out of all the indices and dropped to a third of the NPV of its projected cash flows. It had a bit of good news which lifted the share price which started the mindless buying which has driven the price up to 15 times its NPV

Could 15 times $2.57 happen? The same mugs that sold it for 17c are probably silly enough to pay that much.

The whole things nuts but I'm really glad I picked up 1,55m SBM at 10c and 5m MDL at 24.7c and 6.65m HGO at 4.7c

Good bless the mindless.