Well done footmax for dropping the vitriol on the learner and starting to look objectively at the opinion he devil advocates rather than getting carried away with your emotions like most do on these threads with little justification IMO
I'm probably a bigger holder than most here with both head shares and options. Apart from a lot of positives which do outweigh the negatives, I do have my concerns about MXC generally and are as follows:
1. The learner has correctly stated the fact that the Malta deal is by no means a slam dunk. Anyone with any political clues knows that when these "contentious" issues are finally brought to the vote that politicians, despite their personal beliefs, will generally go the way the wind blows from their respective constituencies. I'm not saying that the legislation to allow cultivation and production will not go ahead but my reading of it certainly does not provide me with any guarantee.
2. The board appears to have quite low expectations about what constitutes success. To me that's actually generating revenue. When that comes to fruition then I don't have an issue but there are a tremendous amount of Performance shares, employee shares, directors fees all issued on the basis of "potential" rather than actual. The number of shares on issue now for a company with a market cap of 110 million is ridiculous.
3. The BOD seem to be commercially naïve. They make all sorts of TR's that don't need to be TR's and put out statements which on the service look exciting but actually don't amount to anything other than a "could be" "have the potential" "open up opportunities" spin etc. I'm not saying they don't but the Varm Co fiasco is a case in point. They should never have said that its a signed $40mil deal over the stated period or that the first million deposit would be paid by end Nov last year. It looks to me that they have been taken for suckers on that one. Damaged goods on arrival, testing delay delay etc is just a lot of BS. Did they have a written contract that stated T's and C's of the deal? I suspect not.
MXC Price at posting:
9.0¢ Sentiment: None Disclosure: Held
