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Gold/Mining/Energy : A CONSUMERS GUIDE TO UNSCRUPULOUS MINING COs

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To: BOB JARVIS who wrote (18)6/14/1997 6:40:00 PM
From: Gulo   of 20
 
Bob, I didn't mean to scare you away from the ASE or VSE! Scams CAN be avoided most of the time, and there are a lot of companies whose future absolutely depends on being able to raise capital in the junior markets. Like many activities, risk can be reduced to the point that the rewards are worth it.

The easiest way to avoid getting burned, IMHO, is to be sure the management doesn't have a bad track record. They must either have a good track record, or have no track record at all, but have a good project. I don't get upset if a stock goes down despite the best efforts of a good management, I get upset if the stock goes down because of bad (or unethical) management.

If investors simply avoided the many players with checkered pasts, the market would be much safer for all. The one thing that upsets me the most about posts I read on SI is that so many people will blindly promote a stock without even knowing the names of the management! Worse yet are the posters that claim their company has outstanding management, when the management has never developed a property to the point of production or sale to a major. All it would take is a $5/month subscription to Canada Stockwatch to investigate the track record of the major players in each of a dozen or more companies per month. One quickly learns many names to be wary of.

I hope you reconsider.
ae
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