Show FIVE DOLLARS A SHARE what do you think of treasury stock in a mining company at 5 a share 1 this is a question propounded to the mining review by an eastern reader and is one that is well worthy of consideration although our correspondent might as well have asked our opinion on paying 30 or 60 for a suit of clothes it is not a question of what you pay as much as it is what will I 1 get the treasury stock in some mining companies is well worth 5 a share while other stock is not worth more than one cent in one case the 5 stock is well worth the money while t the e one cent stock is not worth keeping in the case of the 5 stock the company if its property is of merit and has an apparent value of say the company by the sale of its treasury stock will have ample means in its treasury for its development and complete equipment the returns from the sale of one cent stock would not drive a foot tunnel or sink a fifty foot shaft haft and no matter how valuable and promising the property may be the company will never possess means for its development unless the stock is assessable or money is raised by means of loans or mortgage no reasonable man can expect to realize a profit by the purchase of one cent treasury stock it is as if he threw his money away and he had much better pay fifty cents a share for such stock knowing that the money thus raised would be of material benefit to the company than to accept one cent stock as a gift the object in selling treasury stock in a mining company is to raise means tor for raine mine development and equipment and if the company can start out with or in the treasury the investor stands a much better chance of realizing handsome profits from his venture than he would if the company had but or to go on for a mine cannot be made by the expenditure of so small an amount of money in many cases where a mining company has gigantic holdings of acknowledged merit and value 5 a share is a modest sum to ask for its treasury stock and such stock if all goes well should soon be selling at 10 a share the cent a share bait is intended for suckers for poor people who might be able abil to squeeze 25 or 50 from their scanty earnings and savings but no keen successful business man with or to invest would nibble at it for a mcnutt there is hardly anything that is good because it is cheap on the contrary it is generally dear at any price the great successes that have been made in mining stock ventures have not been made through the medium of one or two cent stocks and it is the general rule that the higher the price in a thoroughly good and reliable company the greater 1 the returns have been companies with small but valuable holdings cannot incorporate for a million and ask 5 a share for their treasury stock but as a rule they cannot meet with ultimate success unless they get at least twenty or twenty five cents for their treasury shares in any case the price asked should be ona on a ratio according to the size and value of their holdings and the ratio of a one cent stock would be too small for serious consideration in the case of the 5 a share query if our correspondent is satisfied as to the reliability ability and standing of the company and the prospective and actual value of its property he had much better invest his money mondy with them than to take a flyer in some of the cheap stocks which are now flooding the market |