a warning

  1. 5,382 Posts.
    G'day, just looking for something in my saved mail and came across this, one of several ramping emails I got from Mark Dixon of Majestic Resources. As a real startup novice I believed him, I commited a large portion of my funds in mjn at 29 and 30 something. Bought options as well, on the road to riches, not. I eventually sold at 18.5
    The worst combination, a stupid greedy novice and a lying ramping bar$tard.
    I have no idea what is happening with the company now, I believe they have a new management team, whatever thats not my point.
    Anyway, this is therapy and a warning DO NOT BELIEVE EVERYTHING YOUR TOLD! Sorry for yelling its part of the therapy. I did post it once before but have the urge to do it again incase you missed it.
    Here's the mail and a chart from that point in time til now.
    PS No offence meant to any holders

    Thanks for your inquiry re Majestic, which has been referred to me.

    Majestic should, by the end of the year, have production of around 60,000 carats of gem quality diamonds, with each carat valued at at least $1,800. With mining costs of about $400/carat, the company should reap a substantial profit.

    However, we are being conservative. On a production of 50,000 carats (ct) at a price-earnings ratio of 6:1, we predict a share price of $1.03. At 60,000ct at a P:E of 10, that rises to $3/share.

    This is based, purely and simply, on the mines we have coming on stream in South Africa. By this time next year Majestic will have four operating mines. Riet River, which we had budgeted six months for payback, paid for itself in two and a half weeks. Pniel, which should be in production by early March, will be a high grade mine. Saxondrift will be the pearl in the oyster and our feeling is that it will be the mine which makes Majestic the most important alluvial diamond miner in the world. We are currently deliberating which of the 14 properties we are evaluating will be the fourth mine.

    Added to that, we have the Angolan and Central African Republic deals, which could net the company in excess of $15 million profit a year.

    Yes, we are being currently bugged by day-traders and bogus screeen bids, but have put into place a number of strategies to counter this. It's a short-term hiccup, but we are dealing with it. As a finance journalist of 20 years standing, mostly with the Australian Financial Review, I can assure you that the media is well aware of the situation. And is preparing stories.

    But...the bottom line is: Majestic will not go through the roof in the next couple of days. It will take a couple of months, but by the end of this financial year the stock will start to reflect the quality of the projects.

    If you have any further questions or queries, please don't hesitate to call me.

    Mark Dixon
    Investor Relations Manager
    Majestic Resources NL
    (08) 9368 6096
    040 99 66003

arrow-down-2 Created with Sketch. arrow-down-2 Created with Sketch.