I won't defend the company, I think they have been disingenuous for allowing this nonsense to continue.
The fact of the matter is that the postings on these forums about midnight calls and "giggles" are BS, nothing more or less. Sure, Elmer picks up the phone and will talk to you- he is a promoter, first and foremost, so you bet he and all of his penny stock peers will. I've talked to him and some of the others at the company. I've also talked to some of the third parties involved.
People were sucked in on multiple levels. The forum culture generated a situation where certain posters felt empowered by building a persona of a knowledgeable and savvy investor, and they posted what they *interpreted* those phone calls were about.
I can think of many situations where people who didn't know a rock from mud, became experts overnight and were interpreting the geology like they were actual geologists. Hey, it's pounds in the ground, right? Those colored blobs mean something exciting, right? Those properties had great surface grab samples, there is a bonanza waiting to be drilled up!
Then there were people posting random articles about copper supply that were pointing to the absolute future need for metal. They called it DD and encouraged others that they could deeply learn about a project by searching on the internet.
It was fun, people were empowered, they were friendly. It was a club of sorts, with a feel-good buzz. I had beer with some of them in Vancouver and Toronto. Some great folk, actually.
When someone raised a real question, or said it would not last, the culture made that go away with a simple label: basher, dismiss, nothing happening here. More sunshine and unicorns.
Even when it was clearly not as it seemed, it was unstoppable. People migrated to AG to get away from the dissenting voices. They wanted to avoid the nonsense they said, but really, it was a drag to read dissent. AG gave power to silence the critics, the system was rigged to do so. They promoted "respected" members to "hubleaders". One of them was a tinfoil hat, "alien" dreams loony, but people lapped it up.
So even as the ship was listing and taking on water in a market of historic demise, the culture of the forum continued, unabated, uncritical, but feeling pretty good. There was a certain solidarity of suffering in common. Even as it became clearer and clearer that the ship was sinking, the appearance of decorum and reasoned discussion made it somehow a little easier to look at investment statements.
Even now, when it is in black and white from the company, a few are still so deeply ingrained in the pattern of behavior that they continue to try to see the positive.
Needless to say, I don't blame the company. They are not a management I would invest with anymore, because I don't trust their instinct, money management or vision. But unfortunately, much of what has transpired is self inflicted.
For my part, I did what I could. I guess I am still trying. I have enough messages from people to know that some got out with more of their capital intact, so I think it was worth it. I've learned a lot along the way.
This company has more room to drop in value and I think it will. How does a 50% haircut sound? I think that is entirely reasonable at this stage. I won't be surprised to see this go to 5 or 6 cents, or 50-60 post-consolidation. |
