Graystone,
I understand that we all hate to be cheated. Unfortunately
scam is just one of it. There are thousands of ways to cheat
shareholders, mostly legally.
-- form a small company, get some revenue, get it to some
stock market with hugely inflated market value during bull
market. Some year 2000 stocks are just a few programmers
with a few contracts but with a few hundred million dollar market value.
-- extravagent management who spent the shareholders money
like crazy.
-- incompetent management who bet on projects that lose money.
-- junior mining stocks buying useless pieces of land
and sit there doing nothing and the stocks just waste away.
-- dumb management spending big money to drill lands with no
chance of finding anything.
etc etc etc.
In all cases you lose money.
That's not scams. But unfortunately the speculators
and investors just lost big bucks .
Any diff?
If we have perfect knowledge, we can avoid all of the mistakes,
but unfortuantely, we can't.
And as for the expert opinions, they are experts AFTER the fact.
I've followed Bre-X since it was looking for diamonds in the
North West Territories. Hundreds or thousands of
expert mining analysts, large fund managers, geologists, journalists
etc all talked about Bre-X POSITIVELY. Including Northern
Miner which never reported on the desert dirt but
reported enthusiastically on Bre-x for the first 2 years.
A lot of them even visit the sites.
Do they find anything before it craps out ?
If experts are that great, they will all make tons of money
and retired in the Bahamas.
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