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Gold/Mining/Energy : The Metals Thread

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To: Condor who wrote (74)3/21/2007 2:34:02 PM
From: E. Charters  Read Replies (1) of 252
 
When it's seed money they think that it is unholy risk and the mouth breathers will lose their piggy banks if they are led down the garden path in high risk, long hold stocks. So what do they do? In order to protect fledgling markets and prevent out of the gate pump and dump they require long hold. This keeps the little guys out and makes the timing of the pump and dump further down the road, as big holders get out after so many barren holes or the market starts to tank. What would happen if they opened up on seed financings? Well it would be harder to support a market in the early days as so many goslings dumped their paper into the wind when you want to ramp into a finance level. You would never get your company financed in the first year, just eat more and more paper.

What they do now is eat all the paper at low bucks and tier it out to accredited but longer term non trading investors, who are taking risks on shotgun small ventures. They are not that naive and they can use flow thru. That is where CDN enterprise gets its operating capital but not its mill money. What mill money is the key. All this flow thru gets spent fast and loose. And you have to eat it all back at 50 cents on the dollar 18 months into the issue, so it is one blow out and you go into hiatus until the next flow thru round. There are other ways to do it. Of course finally when you look at 15 million to build even a small mine, the idea that you can get 100 dentists to put up 150K a piece is perhaps a tad naive. They reserve that for the preferred client list of G-Mac, who BTW has not built a mine since Noah slipped on the two monkey's B-peel and fell off the ark.

EC<:-}
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