What is the fair value of Tara Gold Resources Corp(NDA) (PINK:TRGD) stock and how did the company position its shareholders to realize that value?
These are the most discussed topics these days, after the latest releases were published, announcing that a few law firms are working on some claims against the company’s management for investor and stockholder fraud.
This Monday, parallel to the staring 47.22% price jump up of TRGD shares, the first press release related to the investigation on the company’s latest acquisition worth $83 million dollars was made.
On the same day, the traded in the range of $0.50 – $0.58 per share TRGD closed at $0.51 in a volume exceeding fifteen times the three-month average for the company.
Yesterday, as a subsequent investor reaction to the negative news, TRGD stock pulled back by the modest 3.77%. The volume traded this time was less than one million shares.
It is good that the above mentioned law firms give the floor to investors to ask questions, since the company was not so generous to do this. Further more, those that were eager to make their own due diligence maybe met difficulties in obtaining viable information, not only about the acquisition, but even about the company.
The last available financial report of TRGD was filed with the SEC at the beginning of this July and it presents the company’s financials for the fiscal year ended December 31, 2007.[BANNER]
There, in implementation of TRGD’s strategy to acquire low-cost properties that have the potential to yield high returns, the company presents a list of its previous mining deals, along with a deal about a floatation mill from some most recent times. What is impressive are the terminated “options” and the resumed operations of the “high yielded” TRGD.
Maybe the results from the investigations will find out whether Tara Gold’s board of directors failed to estimate the fair value of the company and obtain the best price for Tara Gold’s shareholders before entering into the agreement with Tara Minerals.
