An open letter to jr. gold investers by Ron Pitts 03/27/97 Message Board

STOCKTALK

We've detected that you're using an ad content blocking browser plug-in or feature. Ads provide a critical source of revenue to the continued operation of Silicon Investor. We ask that you disable ad blocking while on Silicon Investor in the best interests of our community. If you are not using an ad blocker but are still receiving this message, make sure your browser's tracking protection is set to the 'standard' level.

Gold/Mining/Energy : An open letter to jr. gold investers by Ron Pitts 03/27/97

Public Reply Prvt Reply Mark as Last Read File

Previous 10 Next 10 Previous Next

To: Walter Kalin who wrote (31)	3/28/1997 3:47:00 PM
From: Stox	of 297

Hi Tony, Walter, Ron... My best friend's father is sitting tight with his 25,000 shares, even though on paper they've lost $500,000 Cdn this month. Tough on the margin calls though. BXM was removed as margin eligible even before it started trading on Thur. For anyone who had significant BXM and used its value for leverage they were dead before it even returned to trading. Margin calls are worse than getting teeth pulled. I know I've had both happen to me. I am in the camp that still believes there is significant gold in them hills. Time will tell. Until then I don't think we'll see any rebound in the price until: (a). more positive test results can be produced (likely several weeks) (b). BXM mgmt comes out with some strong defensive info via news release (I don't think this would help much at this time anyway) (c). the institutions, large scared shareholders and mutual funds dump their shares on the market. Anybody got any idea how many millions of shares mutual funds hold of BXM? I have yet to see a major equity fund in Canada that doesn't own some BXM. And as far as resource and prec. metal funds (ouch). I would think that many of these funds have been told from high up to dump their remaining BXM shares at any price. I think the price will continue to drop next week as many of these funds have a fire sale. The biggest question I have right now which could provide clues about where the truth lies is - who is buying these millions of shares being dumped? I bet the number of buyers is much smaller than the number of sellers. Anyone who can trace the buyers to source might reveal very interesting agendas of certain parties. Bre-X played with fire and looks like it got burned. If you want to play with the big boys you better bring more clout, mgmt and negotiation skills, etc. than BXM did. I much prefer companies like PFG that get into bed with the major early on via JV. It's just amazing to think that several weeks ago I'm sure that over 80% of BXM investors were sitting on profits. Now unless you purchased early in '96 or earlier you're sitting on huge losses and a big pile of doggy doo. Don't be in a hurry to jump back into this one. el PS - Walter, I am a YRI shareholder but am not familiar with their warrants. Please feel free to email me or post info on the wts details. thanks el

Report TOU Violation

Share This Post

Public Reply Prvt Reply Mark as Last Read File

Previous 10 Next 10 Previous Next