OLE has engaged The Gold Report and this it their text from today.
Because I’ve made OLE shares my single largest holding ever and am currently down over seven figures (and down about 65% of my net worth in about 18 months in actual and paper losses overall) , we could just stop here and say why the *@^* would anyone want to listen to me (I know someone I married 32 years ago wish I listened to her for a change)?
But the fact that many ask me constantly about OLE and especially after what most times proves to be misguided and/or misunderstood discussions about OLE on the Internet, I’m going to make the following comment in hope of addressing many of those questions (and sometimes much worse) sent to me:
- Its been nothing short of a disaster in the junior resource market even before the “take down” of the gold price. It would be foolish to somehow think OLE, related companies or any mining and exploration company was immune to this. OLE recent respond to me regarding this did suggest that despite the carnage, they feel their assets can still attract a merger and/or strategic partner. Time will certainly end up demonstrating if this belief ends up valid or not.
- Its been my personal belief that the logical corporate move is for neighbor Teranga Gold and OLE to merge. There has been much poor speculation, misguided and highly bias chatter about the pros and cons of such a move debated on a chat forum. God bless these folks who have time to post there day in and day out and I truly can appreciate for some, its a place they perceive to get useful information. All I can tell you is from what I’ve seen I sooner know zip then much of what has been posted there as “advice”. I’ve said it before and I’ll say it again, I never will fully grasp why anybody would spend so much time speaking so ill about a stock they own when the quickest and most logical cure is a sell ticket. I’ve found these types to lack one household item that could help them rid themselves of so many non-useful visits to cyberspace – a mirror. Imagine someone standing outside a restaurant day in and day out, telling everyone about the lousy food, service and management yet they continue to eat there. Why someone supposely still owns a stock they constantly complain about will always be a head scratcher. I guess its like a bad spouse to them but they can’t get the nerve to get a divorce.
In my highly bias position, never have two companies seem to need each other and truly are much better off as one versus two seperate concerns
as TGZ and OLE. But to those who somehow think OLE is the desperate dance partner and TGZ is far superior and would only be charitable if they
showed up to the dance, I urge them to read this recent BMO comment on TGZ, note they have lowered their target price from $2.79 to $1 and
said (and I quote) “…current production rates appear unsustainable without increasing capacity or acquisitions…”
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TGZ main “carrot” IMHO is their mill but from what I can see, it’s really only valuable to one other party in the region other than themselves-OLE
TGZ was an IPO at $3, insiders bought significant number of share at $2 or above and I can’t find anyone other than themselves who think they have
long term sustainability with their present assets. OLE appears to be an answer to most if not all their answers and best of all, its very cheap now
(and I believe TGZ would be the surviving management team).
- While a combined OLE and TGZ is IMHO the best scenario, I don’t believe its the only one (even though I fully understand given how long some OLE shareholders have been holding and the impact of recent market action motivates one even more for an exit). OLE is by no means in any driver seat. The conditions of the market, the fact that there’s no more sizzle (drilling) that could sustain share price and it will need to raise money if a deal isn’t done in the next few months, doesn’t make it a care-free speculation.
- The notation of a short-term engagement of a PR firm and the above commentary from the Gold Report has made some to speculate no deal could be close because of these actions. OLE is damn if they do and damn if they don’t when it comes to promotion. They have not done much when compared to some others (and always was criticize for it) and now when they do, they don’t get any credit. Listen, it’s important they they continue to operate as if no deal is coming or even likely because if they didn’t, I can assure you any deal would be that much more difficult to do.