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Politics : Gold and Silver Stocks and Related Commentary

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From: seventh_son8/10/2005 10:19:09 AM
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Here are what I think are important questions for anyone on this board:

1) Has anyone heard of junior resource stock shareholders banding together to form a shareholder's rights organization?
2) Does anyone think that such an organization would have a chance of being successful of changing anything to protect their interests?
3) What things do you think would benefit shareholders? What kind of abuses or negligent actions have you seen on the part of junior stock management that shareholders can be protected against?

Many of the things that I've seen are actions that dilute or lead to unfavourable dilution.
1) Financings that have overly favourable terms, only a select few seem to know about and have the opportunity to participate in, and that management participates in. My impression is that this is a big negative of some Hunter-Dickenson companies for starters.
2) Spending too much on a property that may not seem worth it and leads to more financings at unfavourable terms?
3) Companies being open to takeover without sufficient safeguards to make sure that a fair price is attained by shareholders (maybe because they are not aware of the company's true value).
4) Lack of sensible promotion of the company's assets and potential, particularly when financings will occur at unfavourable prices and unfavourable dilution if the market is not aware of what the company has.
5) The use of partners in financings when such partners have a reputation of sticking it to the shareholders of the companies they finance.
6) Options programs that reward management for shareholder dilution by giving them more options up to a certain percentage of shares outstanding.

Another issue is slow or insufficient communication of good news and particularly bad news.

Maybe if there are some issues general to all stocks, the exchange should be contacted, and changes demanded by petition.

Feedback, please?
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