Rick, unless I'm mistaken the stock closed at .78 today, so no change from 2 days ago before PR.
There has been a pattern over the last 3 years of the stock going down on each and every PR, and usually you see someone offer stock below the bid at 0930 the day following the announcement. This has had the tendency to make people, including myself, say "well the market is voting that this PR is empty," and the price spirals down.
The last 2 PR's have been associated with upward or sideways movement, so it looks like whoever has been trying to keep price down is losing his success, and hopefully his money. The same pattern has been used to halt any trading rallies.
Now some of the stock price problems have been associated with general market fall out from Bre-X, and some of it has been associated with disappointment in the company. I like the guys in IR, but I think they had a tendency to make vague promises, which until recently have not born fruit.
But in addition to normal market forces, there is somebody out there who has been trying to keep the price down, any may be using individuals on this thread to help. Who would this be, and how and why would they do it?
If someone is holding a large enough stake (and this could be a brokerage, bank, or even a corporate insider), which they didn't want to sell, but wanted to earn some income on, they could lend the stock to a short seller for a fee. For the last 3 years, the short sells the day post the PR, drives the price down, and covers in the pm for a nice profit. Is this happening and is someone lending the stock?
We will never know. But, in my opinion, with CMR now delivering the goods, cobalt refinery, cobalt mill, flow through financing, the shorting strategy, if extant, will no longer work. Whoever bought those shares at .71 today must be pretty happy with his 10% profit in 8 hours.
The second problem with the PR's has to do with the syntax. I obviously follow the company closely, and I had to read the PR about 3 times before I got the whole gist of it.
Paragraph 1 mentions the exploration program, BINCO, Thompson, unspecified postive developments, nickel prices, and economic recovery in Europe, Asia and S. America.
Paragraph 2 discusses geologic map of Manitoba, and contributions of CMR and CGS to the map.
Paragraph 3 discusses blue sky potential of BINCO
Paragraph 4 discussed INCO's exploration of surrounding areas and CMR's geologists and who they used to work for.
Paragraph 5 then discusses upcoming airborne survey and throws in that the flow through money has been raised.
Paragraph 6 then discusses "pending announcements" and the Cobalt refinery.
Ok boys, what is the take home message? You see, the PR is filled with too much information for most people to understand, and not enough information to explain why co-incident actions such as INCO surveying are significant. There is little, if any connection or continuity of thought from paragraph to paragraph. They need to work on this, and decide what their message is, and tell it simply in the 1st paragraph, which some bright young cub reporter could then clip and stick in his newspaper.
For instance:
On the recommendation of W. Perdery, Ph.D, P. Eng., senior geology consultant, CMR is to begin a new exploration program of the BINCO property, located NE of the Thompson Ni belt. Recent discoveries on the BINCO property and re-examination of existing data have led the Manitoba Dept. of Mines to suggest that the Thompson Ni belt extends through the BINCO property. Since the reclassification of the nickel belt's geology, several mining firms, including Nuinsco and Inco have begun exploring areas adjacent to BINCO. CMR has obtained financing for the exploration project of $1.2 million by placement of flow through shares.
Further information is available at the CanMine Website www.cmr.com or by calling IR at ....
Did I miss any major points? Which form is more likely to be read and understood by a busy analyst/editor/investor?
Which form is more likely to be printed in full?
Ronald Reagan went to Washington and wanted to do 3 things, cut taxes, defeat communism and strengthen the military. That was his message, everyone understood it and he accomplished his goals.
They've got to work on simplifying the message. Those of us who want more info can hit the website or call. |
