well i couldnt give a stuff about a profit on the P&L to tell you the truth, what i want to see is that the management use the cash on the balance sheet effectively.
that means buying the notes and stopping further dilution. as for there not being any notes for sale, well thats not true. over the last few days around 500k note have been traded, its not big numbers buy someone is still selling.
so i want to see management us the cash effectively by buying back the notes and stopping dilution. i bet the fund managers want some of that $28m in cash, the question is how much. im not selling my notes because i want $0.95 per note back on 30 June 2010. if they dont have the cash then the same thing that happen to B&B will happen to AXO.
like i have said before, if i was Hebei i would call all the fund managers and offer them $0.50 per note and then wait for AXO to run out of cash and get Balla Balla on the cheap.
so managment need to buy back the notes and then try and do some deal to get the mine built. the reality is that with no backing from teh chinese in terms of equity and debt then the project wont happen. management need to get the chinese cash in the door for the market to reallu beleive the equity is worth more than $0.093 per share. at the moment the market doesnt think they will get finance, until that is proven wrong by management the AXO share price wont move and my AXOG will become more and more important the longer management doesnt do anything.
AXOG is the safer bet until management can display that they will get the chinese to fund it, without that im not selling my notes, in fact i will keep buying the notes from the stuipd sellers because at the end of all this the note holders willl control the destiny of the resource, not management.
AXO Price at posting:
9.3¢ Sentiment: LT Buy Disclosure: Held
