LIES, LYING and LIARS.....
They can't help themselves. Liars tell fibs, exaggerate, fictionalize, hyperbolize, fabricate, and
misrepresent something. Especially themselves. And always their projects.
Those who lie don't just do it once. They do it on a continuous basis. If you hang around liars long
enough, you will soon begin to believe that black is white and white is red and red is blue. And so
forth. The SECRET to detecting a liar is by observing their behavior. The key is LOOK, don't
listen.
If they are dumping their stock, they are telling you that "in 2 hours we'll find out if this hole hits."
Pure horsefeathers. If they tell you the assays are coming back on Wednesday and you are still
waiting a week later, RUN for the exit. If that incredible deal is coming through in August, and we
are now in December, RUN RUN RUN. You are being played for a few more days, weeks,
months, etc. until a new wave of buying comes in. The insider, stock promoter, and (yes, even your)
stockbroker already knows or suspects the outcome and is frantically trying to prevent you from
dumping.... until that NEW wave of buying can come in so they can dump THEIR shares.
There are a few observations I've made or even had handed to me which can help you detect the
liar who is lying. Here are some of his lies:
1. The promoter suddenly changes his story. No, it is no longer silver in Mexico which the company
has practically discovered. Now, it is diamonds in the Ukraine. Similarly, it is no longer Voisey Bay,
but now it is Albania, where the company will find copper. Any time that any promoter CHANGES
his play, you are being lied to. Sorry, but it is a fact.
2. The "deal" is taking longer than expected. The Sultan will be flying in from Brunavia any day now
with the "check." Forget it. This is a lie. The play is over. Next, it will be the "Emperor" from "Mars"
which will be flying in his spaceship with a load of platinum.
3. The "deal" is so big that it is unbelievable. Well, it is. Anyone who IS in business, or has been in
business, knows that something that "just happens" overnight has been years in the making. (I once
had a successful publishing company that "took off" one day. Or so my new employees thought. I
had actually tested it, piloted it, tinkered with it, ironed out most of the flaws, etc. over a three year
period!) Rule: When one is truly desperate, they go for the grandslam home run "of all time." And
their "success" depends entirely on getting YOU to believe it.
4. News releases which focus on "new appointees" or an "advisory board." Sounds great. Where's
the meat? (Look carefully. How can the company afford those people? With stock options?)
5. The company which has already found 15 million ounces of gold on their property and has begun
NO exploration or very early-stage exploration. These are a dime a dozen. And there are variations
on this. That's why the drill campaign is the lie detector.
6. The company which has NO concrete plans to drill or lies about their drill program. Always bad
news. The "word" is this: Why ruin a good property by putting a drill to it? Yep, that's the word.
Watch out for it. Anyone who has NO real plans to drill has NOTHING. And the stock will soon
become worthless.
I'm sure you have your favorites. Mine is this one: "The shorts are killing us." Yes, the shorts are
killing the stock because there is a weakness there. It could be the insider blowing out his shares,
the drill never arrived, the drill broke, the accountant leaked that there are NO earnings when there
should be, etc. Yes, the shorts WILL find out and they will massacre that stock. They also know
everyone else and are the first to smell a lie.
Those who lie don't just lie once. They do it all the time. It's actually hard for them to tell the truth. If
the person on the other end of the phone SOUNDS oily or sleazy, if he sounds like he'd make a
great used car salesman, then you are probably being lied to.
One SURE way to detect someone who the market has already figured to be a liar is the "impact"
of the company's news release. The stock stays pretty much flat before the announcement,
continues flat after the announcement and drifts lower a little later. All on very little volume. Why?
No one believes the company or the management. They are known for what they are: Liars.
By George Chelekis |
