Vollständige Version anzeigen : Brewing the next Bre-X

24.01.2003, 10:08
Vorsicht bei die Junior Miners ... nach der Silverado fiasco vor ein paar tagen , kommt der frage wieviele mehr "pump and dump" wert sind noch da.

Meist sind bei OTC oder OTCBB gehandelt und kommen nicht richig unter die Ami SEC regeln ... so sind offen fur manipulation und spielerei. Alle sind im ausland und nicht so einfach zu recherchen wie die NEMWAX schrotties von 1999 hier.

Ein beitrag von MiningWeb uber der gefahr ...

NEW YORK -- Micro-scale Alaskan miner, Silverado [SLGLF], first saw its momentum halted after probing questions by Gold Stock Analyst publisher, John Doody, in early January. Then it was crushed by a follow up in online publication WorldNetDaily that more fully exposed contradictions between Silverado’s SEC filings and promotional claims.
After a one-third plunge on Wednesday, Silverado president and chief financial officer Garry Anselmo issued a statement claiming to be unaware of any adverse information. It was a bizarre communication with shareholders given that the WND report was well through the market and investors were clearly voting on it.

Silverado supporters think the WND report an unfair attack on the company, although there is little to criticise apart from a verbatim transcription of an Anselmo conversation. Most people’s directly transcribed speech could make them sound evasive though it is also fair to expect a company president to speak fluently on critical issues.

Thankfully, there will be few tears about money lost on Silverado since only “wager” money would have been put into play. It is not demeaning or unreasonable to characterise Silverado as high risk – nor the dozens of companies in that category – it is simply a function of the spread of opportunities.

In a rising market as we are currently enjoying, the risks actually increase throughout the sector because more projects come into play, investors become inured to doing their homework and chancers invade on the whiff of easy profits. Investors new to the sector need to be aware that it takes a special class of management to bring a mineral deposit to account and continue adding value. Even then, there are myriad temptations that can cripple an otherwise healthy company; Stillwater Mining being apposite.

Most of all, investors must beware of the handful of unscrupulous promoters currently running up small stocks, many whose best experience with gold is a wedding ring or their last fleecing. There is presently a scheme underway whereby newsletter writers and web site publishers are being cut in if they help build companies on the back of inflated stock flogged to unwary investors. ;)

Mineweb has a copy of one outrageous tout from a public relations-cum-publisher-cum-part time banker that illustrates the modus operandi all too well: “I believe their [sic] is a phenominal [sic] opportunity to pick up a million or so shares under 10 cents and then market the company via newsprint, newsletters and through the major gold related internet sites. We also have capabilities to do an S8 for consulting shares.” The message concludes with this chilling suggestion: “It would be great if we could set aside a few minutes to talk about possible synergies between our group [sic] to set in place a foundation in which [Company X] can build an empire.”

It is only a matter of time before we have the next Bre-X on our hands if these plots are not nipped in the bud. If you are going to invest in gold, but don’t have the time to do sufficient research, stick with the senior producers that make up most of the value. If you want to speculate, then at least do some straightforward research on who you’re giving your money to.

The following points tend to indicate higher risk investments:

· Exploration companies generally make bad mining companies.

· Third rate asset – quality gives profits, quantity gives diversification, together they make a company.

· Complex control, wheeling and dealing – company options assets to other companies owned by it, prevalence of pyramid structures, cross directorships and control blocs.

· Capital structure history – who got what at what price?

· Current shareholders – the more prominent institutions and top fund managers the better.

· Bad apples – if anyone or anything linked to the company and management has a bad track record stay well away, no matter how compelling the apparent technicals or fundamentals.

· Feasibility studies – do they exist and are they independent and respected?

· Business focus – mining is hard work, more so for small companies that should not be dabbling in tangential areas.

· Government subsidies – corporate welfare cannot sustain earnings.

· Single managers fulfil multiple executive roles – sometimes unavoidable, always undesirable.

· Management conflicts of interest – contracting with companies owned by executives or buying assets from them.

· Executives outlast (outwit, outplay…) shareholders – a company should always operate for the benefit of shareholders, not insiders. How does management write and exercise its options?

· Wealth creation ability – is free cash per share improving or deteriorating?

· Shareholder equity – junior’s can dilute you to nothing in a heartbeat. Is the company a “serial financer” and do the financings improve book value or reduce it?

· Habitually over promise and under deliver – never short of good excuses.

· Promotional activities – stock promotion is designed to part investors from their money. Some get it back with a return; many don’t because they are at a massive disadvantage relative to the promotion infrastructure (management, banks, brokers, analysts, consultants etc).

· Media activities – junior miners often use questionable media promotion, relying on writers to pump up their stock in newsletters and pseudo-analyst reports. A common and insidious scheme includes issuing options, other favourably priced securities, or directors’ and consulting fees to the writer so that they are appropriately incentivized to call it a moonshot. If a report is paid for, throw it away. Demand absolute transparency on writers’ links to companies and their trading in the stock.

· “Careful” discrepancies – statements in press releases and media reports vary from those in regulatory filings.

· Odious comparisons – likening a patch of dirt in some remote spot to a functioning, wealthy mine.

· Hesitation to reveal mining costs per tonne – cash costs tell you very little.

· Speculative views on commodity prices – every mine looks good if you talk as though the product for sale is 10 times more valuable than it is presently selling for.

· Annualising key numbers – annualised data is a fudge. It must be actual or forecast and then hold management’s feet to the forecast fire. Just one quarter’s grace is sufficient with juniors, otherwise they should not make forecasts.

· Auditing – timeliness of financial reporting and quality of auditors.


Be careful :D

19.02.2003, 23:43
Der Silverado fiasco ... Mr Pump ist weg gelaufen :D


Gold analyst 'disappears' following WND report
Touter of Silverado stock rumored to have fled country after story ran

Posted: February 19, 2003
1:00 a.m. Eastern

By Sherrie Gossett
© 2003 WorldNetDaily.com

A controversial gold "analyst" who had touted the stock of a company that was the subject of a WorldNetDaily investigative report has subsequently disappeared, according to industry insiders.

Bob Chapman was last seen at the 2003 Vancouver Investment Conference, held Jan. 26 and 27, where he was a featured speaker.

Sources report that Chapman had a lawyer by his side throughout the event.

Since then, several analysts report that Chapman's phone has been disconnected, that he has not replied to e-mail and that he is weeks behind in filing promised financial reports to editors.

In the special investigative report on Vancouver's Silverado Gold Mines, WND reported that Chapman, who was an avid promoter of Silverado stock, had previously been paid 1.8 million shares of Silverado stock as part of a "consultant" agreement. Silverado Gold stock plummeted 56 percent immediately following the WND report, as trading swelled to a record 27 million shares.

Aufpassen ;)

21.02.2003, 12:23