GENERAL COMMENT
Nothing really in the news this morning in regards to oil & gas. So, I will briefly touch upon a subject I am frequently asked about.
One of my guidelines is, I will not purchase shares of any company listed solely on the Vancouver Exchange. I've mentioned it frequently in my early postings. Promoting and hyping of companies listed on this exchange is just their everyday way of doing business. Hiring of companies or people to serve this objective is common.
I am constantly bombarded in calls from these people. I also receive what I will classify as "junk mail" from these same people who promote companies. If one were to check, promoted companies usually turn out to be very poor investments. A company I have mentioned recently, Arakis Energy is a great example. There is absolutely one objective, be no question about it, promoters manipulate share prices. I know people who invest based solely on when a company is initially going to promote the stock and get out just before promotion comes to an end, or at a specific price goal. Wow, just think about that for a moment. Most of these companies ended up being shorted, and sometime I wonder by whom. Then we have price manipulation going the other way. Look at the case of SolvEx. This company's stock was heavily promoted and crashed. Just before they crashed, they had an equity offering near its 52 week high. The company appears to have capital and credentials to get their oilsands project going. Now I read where another company has hugh short position and is putting out information to drive shares down. They are being sued by SolvEx. Theme of the story is this, once promoted, companies usually stay on that track, whether they want to or not, and end result is investors, like you and me, get scorched.
Our friends up in Canada are aware of scandals which occurred recently involving two very popular traded mining companies listed on Vancouver Exchange. Another case of manipulating price via hyping of shares, supported by false or misleading reports. Which brings me to the reason which kicked me off on this subject. Another angle in promoting a Vancouver listed company has surfaced. For details, go to canoe.ca
I just don't think the Vancouver Exchange can get away from the bad reputation that certainly exists. They have made valiant attempts, but thus far have come up short.
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