Truman...
First, I compliment you on your eloquent writings....
Secondly, I come to this board not as an expert in mining and its
technical jargon but as a member of the business community
with a background in common sense and warranted skepticism.
I've worked very hard in my profession and have been burnt badly on several stocks a few years ago. One was a mining company,
Sky Scientific. I have paid in these several losses a substantial amount of money along with sweat equity. I have been a prodigy board member for four years on the stock boards. Most of the problems that arise can be contributed to taking recommendations off these boards without due diligence....in other words, blind investing.
It's amazing what takes place in the stock community and what little power the securities and exchange commission has in governing
such rampant fraud.
Examples of such are corporations taking over shell companies
that already have a presence on the exchanges, eliminating
much of the reporting and disclosure requirements that would be required in a ground up formation. These companies require alot
of hype to build stock value as they have little capital and report
losses consistently. They usually have a tough time proving
any of the hype. Since they are mostly undercapitilized, they purchase assets with stock which increases the amount of shares outstanding. After the shares outstanding become so large
that the company has a difficult time increasing shareholder value,
the company does a reverse split to reel in many of the outstanding shares. This ultimately becomes the beginning of the end for the company and delisting usually follows.
There is little you can do to recover losses as the monies of the company and the assets of the individuals are shielded. Your best bet is a class action but by the time the major creditors are paid
off what is left for the shareholders has to be divided among the many and the attornies.... It's a humbling and frustrating experience.
You are just starting to get a glimpse of the fraud with the recent NASDAQ problems.
Now...I do own NPEC....it may be good, but depends on what the assays disclose and I am not real comfortable with that unless they are performed by a separate unbiased entity.
I don't like the sound of Don Walenchuk and how he operates.
Too many people have taken too many people at their word...
and this business about "the shorts are going to get squeezed"
is making me wonder if this is a cover for a less than ethical company? You have to ask yourself, why the fall from $7/share?
Why the heavy short position? I mean, they are betting it to go down,
coprrect? And this Wolenchuk fellow tells folks to call in their shares
but then does not go on to say what can happen while they are being transferred to you. This transfer process can take one to two weeks.
During this time you are in effect, locked out of the market. If
Wolenchuk is able to put a squeeze on the shorts...run the price up,
then bail...the locked out investors are left holding the bag.
Please understand, I hold this stock. I realize my words are not helping things. But if this stock is so great as many state, my
words nor the short quick play will matter. Good companies
with proven potential and solid earnings thrive in any environment.
Kindest Regards fron the Pacific Northwest... Lance |
