ragingbull.com
By: Che__Guevara
Reply To: 196 by Gold+Advisor
Monday, 19 Jul 1999 at 8:25 PM EDT
Post # of 201
Response to Gold+Advisor from a former geologist and vetran penny stock speculator
"There is two companies who shorted the stock: originally by a New York firm through Night
Securities and recently by a Canadian outfit called Nesbit Burns. Some weak investors also
panicked and sold some shares. Remember, the stock went from $1.50 to $7.75 with no
news. The ONLY reason it is depressed right now is because of the shorters."
Yeah right! Even if we accept this on face value you have to consider the implications. Nesbitt
Burns is a large and respected brokerage house and they don't take a short position without
doing some analysis. A short seller faces theoretically unlimited losses if they are wrong in
contrast to a long investor who can only lose the amount of their investment. Nesbitt Burns
must be pretty confident that ORXX is likely to go down for them to take such a risky position
(ORXX has gone down significantly proving them right)
"A. We have to “squeeze” them out by buying into the stock. Once the price touches certain
point, they would have to go in and BUY shares themselves on the open market! The stock is
extremely cheap right now and a great bargain anyways. "
- Again, I would question the "cheapness" of any unproven and speculative technology
particularly one associated with gold mining. As for the "short squeeze", they do happen but
they aren't advertised in advance except by the desperate.
"A. Yes, there are few groups [large investors] who should help us to squeeze the shorters out
very soon.
- who are these large investors and how do you know that they will help. IMO you are either
implying insider information or are lying.
"A. The company is working very aggressively on completing the acquisition and actually
starting the process in the field. Furthermore, it will reach a wide audience with their two
newly hired PR firms. The actual acquisition (not letter of intent) should be completed within
next 10 working days. That means that we could see the first gold within next 4-5 weeks! "
- The idea that the company must do an aquisition to prove the technology is IMO a red flag.
Is ORXX a technology company (okay) or a gold miner (bad). If the technology works as
hoped (and is patentable) then ORXX will do very well indeed. Aquiring an interest in a
mining operation is an unecessary and costly diversion if they really do have a revolutionary
technology.
Also, given that the mining community is small and closely knit, why would ORXX hire PR
firms?? If the process really works then the mining firms will beat down the door. The only
reason for hiring touts IMO is to sell stock not the process.
"A....minus expenses....."
- nuff said
"A. Yes, it is estimated that 1 oz. of gold can be extracted for about $175. However, using
HGP, OREX can process 3-4 times more gold ore per day. Furthermore, silica sales will help
to drop operating cost significantly. No one will know the final cost of getting 1 oz of gold from
the ground until its tried, but my personal best estimation, taking all factors in consideration is
around $90-$135/ounce (which is very good)."
- care to share your assumptions?
"The silica flux is used in the copper market. The quartz rock that contains gold is 85-95%
silica, which is much higher than most flux ore. The silica sells for around $40.00/ton right
now. "
- FOB mine?? if you could really get $40/tonne for silica then why even bother extracting the
gold - just sell it as flux. Suffice it to say, you will have trouble getting $40 US per ton for 85 to
95 percent silica.
"A. Knowing how little of buying power its takes for the stock to soar, and that the HGP
process works very well, I expect it to be in $10-$15 range within 3 months and in $30-$35
range in 6-9 months."
- I expect Sharon Stone to drive up any minute now in a brand new Porsche 911 and whisk
me a way for a life as her kept man/sexual plaything. |
