UML 0.00% 3.3¢ unity mining limited

Well they failed to make a profit last quarter due to high cash...

  1. 837 Posts.
    Well they failed to make a profit last quarter due to high cash costs. I think one problem with UML is their large cash reserves, yes it makes the stock safe, but greatly limits it's leverage.

    For example imagine if they did not have any cash reserves, it would give them a market cap of $15 million given the current market price and it would be a stock price of around .03 cents. Buying at that price would give alot of leverage and I think if that was the case the stock price would be .06 or about $30 million market cap because people would be more excited about it.

    I am abit sick of all this money they have, it has caused them to become relaxed and slow in what they do. I also wish they would focus on their own gold mines instead of seemingly always focusing of their share in this other company, I am not really all that particularly interested in it. I think they are underwater on their investment in goldstone with it's recent shareprice dive.

    I know what would make UML happy, get that 42 million, keep 5 million of it and distribute the rest as a large dividend.

    That way we could get a .7-.8 cent divy per share and the share price would likely fall to .06 per share & $30 market cap for reasons I explained above, that is a good way for UML to increase shareholders worth. It would increase shareholder wealth by .03 to .04 cents.
 
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Currently unlisted public company.

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