This is so funny I am still laughing. It was posted on Raging Bull.
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By: mulbo
Reply To: None Wednesday, 25 Aug 1999 at 1:28 PM EDT
Post # of 2487
Everyone, I just got off the phone with someone at Orex (no names, what I have to say may get me legal hot water). He/She was extrmely cordial and willing to talk. We spoke for about 7 minutes. The bottom line is this: Orex suspects that their shares have been shorted by Canadian brokerage houses. They can short OTC:BB stocks in Cananda. What's more interesting is that Orex believes that these brokerage houses are acting as an agent for the Sulfide/Cyanide extraction industry. As most of you know, who did some research, cyanide has been the dominant method for extracting gold worldwide. However, its use has become increasingly restricted because, well, cyanide is nasty stuff and very toxic. Already a number of states have banned its use. The only alternative to cyanide extraction is the Haber Gold Process (HGP), which is not toxic, "you can gargle with it" and, according to the company and "BUSINESS WEEK" more effective at extracting gold from the ore than cyanide.
Now.. the cyanide industry, which has had this monopoly for quite some time, probably isn't going to take this lying down. IMO, remember this is speculation, they are responsible for shorting this stock in order to keep the comapny's valuation down, so they will not have the $$$ to implement the HGP and fully compete with the cyandie industry. This is like something out of the wild west or the Duke's of Hazzard! LOL! Obviously, Orex can't state this officially because they have no proof (offically). But IMO, I think it's obvious. There would be no other reason to short this stock. All the PRs over the past several months have been positive.
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I think the market cap on Haber is about $1.5 million. I would think that if any of the cyanide producers were worried they could take this company over very easily. Also, if they thought the Haber process worked I don't see why they couldn't strike a license agreement with Haber to produce and market Haber's chemicals. Haber may have a process that works but he is a long way from the assets necessary to produce the volume of chemicals required by the gold mining industry. Also, keep in mind that the gold mining industry isn't the biggest market in this country for cyanide. I forget the exact numbers, but I think the plastic manufacturing industry uses about 10 times more cyanide than the gold mining industry.
In fact, that is the funny irony about cyanide. All of these people worried about cyanide out here in the desert, middle of nowhere, and the plastic plant next door is probably full of it. VBG |
