Hello Board!
CD may I congratulate you on what I consider to be one of the best stock forums anywhere on the net. I have read most of the posts on this forum for the last year or so, and enjoyed meeting a few of the contributors here last month.
For some reason Coach247 is already taken for a screen name, so I guess I am Zoo York on SI. Anyway, here is the text of my post on the stockhouse forum in reply to some of the questions that were raised in regards to ORM on this forum lately:
"Here is the link to the most recent interim financial report for ORM, Q3 2004: sedar.com
Scroll to page 11 of the report. Listed under share capital, you will see 7.5 million special warrants of ORM, valued at .001 each that were issued in June 2003 before the company went public. These shares are held in escrow and released for free trading over a fixed schedule covering a number of years. From the anual report dated March 16th 2004, under the notes to the financial statements, Note 5 states: "The remaining shares are to be released in equal portions every 6 months starting May 18, 2004."
Scroll down to page 15 and you will see that 5,700,000 of these shares remain in escrow. 1,140,000 of the special warrants were released from escrow on May 17, 2004. Feel free to look up the chart for ORM during that time and see for yourself what happened to the shareprice. The next batch of 1,140,000 special warrants are due to become free trading on Nov 17, 2004.
I respect the opinion and insight of Claude Cormier a great deal, and consider him to be the very best of the advisors in the PM sector. However I strongly disagree with his comment that the shares are already part of the capital structure of the company and will not have a great impact on the trading. Yes, they are accounted for in the share structure, but since they are held in escrow, the impact of these shares is not accounted for. Once they are released for free trading it is reasonable to assume that some will be sold off into the market and will probably trigger a period of short term weakness similar to what we witnessed in May '04.
I sold a few thousand ORM earlier this year at $1.26 and rolled the proceeds into the PP that was eventually issued at 90 cents, which I continue to hold, for the purposes of disclosure. I think ORM will be a very successful investment and may even beat the odds to advance their property all the way to production. I have absolutely no agenda to bash the company or its prospects. But as investors sharing information on a discussion forum for the benefit of everyone, I think it would be dishonest to surpress or deny the fact that this overhang of cheap paper gradually released from escrow will negatively impact on the trading of the stock. I have posted this information on the forum in the past, and do not plan to do again. People can either believe me, look it up for themselves, or choose to consider it misinformation..."
cheers!
COACH247 |
