By Tom Winnifrith | Wednesday 11 January 2017
Disclosure: I have no positions in any stocks mentioned, and no plans to initiate any positions within the next 72 hours. I wrote this article myself, and it expresses my own opinions. I am not receiving compensation for it (other than from ShareProphets). I have no business relationship with any company whose stock is mentioned in this article.
As at 30 June 2016 Golden Saint Resources (GSR) had $722,000 cash and cash equivalents but by mid November the tank was empty and this cash guzzling joke of a company needed to raise another £400,000 gross (call it £350,000 net or $450,000) to keep going. So how much is left? The share price tells you that cash is running out fast (again) - the stock is now at an all time low of 0.025-0.03p valuing this crock at just £1.6 million. That, BTW, is £1.6 million too much.
The first thing to note is that the company had to pay its annual license renewal fees on two of its three properties after the last placing and will pay the third in a week or so. That will cost a bob or two. Meanwhile, if the cash burn was c$700,000 in the four and a half months before that November placing a simple extrapolation suggests that the hat will need to be passed around yet again by mid February or it is lights out.
Clearly this stock, which will never generate a cent of free cashflow, will only attract investment from bucket shops if they are offered shares at a huge discount. Heck even the company's paid cheerleader, the PR fecking genius Steffi (PR to nearly all the worst companies on AIM) has dumped most if not all of her shares. But you don't need to be a fecking genius to know that this is not a stock to own.
So what price will the next placing bet at? How about 0.01p or maybe 0.015p? And to think that this company listed just three years ago at 10p per share.
It goes without selling: do as Steffi does not as she says: KEEP SELLING. Long Term target price 0p.
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