I have been a very long term MMN holder for many years getting in around 3 cents. I was a buy and hold type person up until 2 years ago but realised that if you trade in/out on their big moves you can make a killing! I have always supported their placements as my thoughts are that if you don't you may as well as not be invested in the company as the support of the placements are really value adding to the company and ultimately your profit down the road. The last big placement was at 14 cents with a free option two or so years ago. Those that took up that entitlement rode MMN shares to 45 cents and the free options to low 20's. It added up to a 400 percent gain in very little time. Macmin require the money from this placement more now than at any other time in their history. Downside if they do not get the money is we have investments in a company that will not meet design production capacity which will ultimately lead to making losses and cash burn and further share price errosion. Taking up the entitlement gives MMN the cash to pursue meeting then increasing production rates, more drilling which should translate into a significantgher share price increase especially if you are as bullish silver as I am. What I am trying to say is that I cannot recall a time that I have invested in a MMN share placement where I have been worse off . The buy and hold brigade would disagree but realistically the buy and hold theory in todays ever changing and volatile markets is finished! I think it is fear and greed that drives most buy and hold decisions. Fear that if you sell you will miss the huge profits and greed because you have these rose coloured glasses idealogies. I note that 7M shares have been allocated yesterday which raises approximately $1.4M. I intend taking up my entitlement but have also been topping up at 17.5 cents. What I am saying is, there are a lot of people out there that fail to see the big picture. The big picture is that MMN could be producing 3-4M oz of silver 12-18 months down the track, have a jorc compliance reserve at Talley Ho and possible development decisions on that prospect. The little picture is that these guys are bleeding you, have not met production and are constantly failing to live up to their promises. If you are a little picture person you should sell because if there are enough of you the share price will never rise but grind down lower over time. What we need is big picture investors in MMN. I do agree that offering a October 2008 option is a huge risk as we are now really betting on a huge turn around in less than 9 months. It would have been better for MMN to offer options that had at least 18 months before expiry.
MMN
macmin silver ltd
