Let us take a deep breath. For the next little while (until the full report is analyzed by all the experts and potential partners) things are going to be edgy. GE could move up to $0.80 then drop back to $0.30. Who knows? The market reaction is a mix of enthusiasm and fear. To those who say that this cannot be a scam, I say watch out. I do not believe it is, since I still have not sold a single share, but I do understand that it may look like one. Want it or not, it has many of the warning signs: news about the company president on TV, the moody's application gone wherever, the shady past (SEC stuff), the late reporting, the overt support of elected officials, the unorthodox methods used to determine proven reserves on far fewer samples than the industry norm, the fact that for insiders owning a few million shares $1.00 for the stock will make life comfortable for quite a whileetc...
There are plenty of cases where scams have been repeated. During the 20's, a con artist sold the Effeil Tower... twice... to supposedly shrewd businessmen.
Another great one was the "sniffing" planes bought by the French Government, those things that were supposed to detect all kinds of deposit from the air at virtually no cost. The government experts saw nothing.
On the other hand, there is the fact that the region has been producing gold historically, that the type of deposit may warrant the use of unusual methods for assessing reserves, the fact that the company is low on cash and has to do what it can with the available resources, the fact that nobody can hope the stock to go sky high until independent surveys and production confirm the hopes.
I feel that nobody can know for sure at the moment. We are still on faith here |
