Q: Peter,
In praise (at last) of a very strait forward comment of their dismal drop of share price, Gold canyon says this: ....Management has recently engaged in significant consultation with Gold Canyon shareholders, investment brokers, analysts, institutional traders and investment bankers regarding potential contributing factors to the Company's share price weakness and large trading volumes and believes the following may be attributed, at least in part, to the recent downward pressure and larger trading volumes in the market for Gold Canyon shares:
Market participants have indicated that, due to investor fatigue with the mining sector, both retail and institutional, and prolonged mining sector weakness, resource money managers are experiencing higher than normal redemption challenges in their funds and managed accounts, causing them to sell shares to raise the cash needed to make redemption payments. With respect to Gold Canyon's shares in particular, the continued recent demand has resulted in bids to buy at reasonable valuation levels, providing the sellers with better liquidity than is the case with many other mining issuers, and indeed than had historically been the case with Gold Canyon until very recently.
Gold Canyon had historically issued a large number of "flow-through" common shares which, because of the associated tax treatment in Canada for qualified flow-through mining expenditures undertaken by the Company, carry a much lower cost base than regular shares. The lower cost base allows resource money managers to sell these shares at prices that, despite declining market prices generally, are still profitable, providing more attractive optics than selling at a loss....
Now,long after 5i research confirmed the dangers of convertible debentures, one company is doing the same with Flow Through. A rare public press release indeed (and also totally self serving of course but why not).
What do you think? And where does that leave the value of the company stock (I do not own it)
PUBLISH ONLY if you think it is worth it for your subscriber's community
In praise (at last) of a very strait forward comment of their dismal drop of share price, Gold canyon says this: ....Management has recently engaged in significant consultation with Gold Canyon shareholders, investment brokers, analysts, institutional traders and investment bankers regarding potential contributing factors to the Company's share price weakness and large trading volumes and believes the following may be attributed, at least in part, to the recent downward pressure and larger trading volumes in the market for Gold Canyon shares:
Market participants have indicated that, due to investor fatigue with the mining sector, both retail and institutional, and prolonged mining sector weakness, resource money managers are experiencing higher than normal redemption challenges in their funds and managed accounts, causing them to sell shares to raise the cash needed to make redemption payments. With respect to Gold Canyon's shares in particular, the continued recent demand has resulted in bids to buy at reasonable valuation levels, providing the sellers with better liquidity than is the case with many other mining issuers, and indeed than had historically been the case with Gold Canyon until very recently.
Gold Canyon had historically issued a large number of "flow-through" common shares which, because of the associated tax treatment in Canada for qualified flow-through mining expenditures undertaken by the Company, carry a much lower cost base than regular shares. The lower cost base allows resource money managers to sell these shares at prices that, despite declining market prices generally, are still profitable, providing more attractive optics than selling at a loss....
Now,long after 5i research confirmed the dangers of convertible debentures, one company is doing the same with Flow Through. A rare public press release indeed (and also totally self serving of course but why not).
What do you think? And where does that leave the value of the company stock (I do not own it)
PUBLISH ONLY if you think it is worth it for your subscriber's community
