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Strategies & Market Trends : Ride the Tiger with CD -- Ignore unavailable to you. Want to Upgrade?

To: RetiredInAus who wrote (17177)	10/25/2004 6:01:11 PM
From: zoo york	Read Replies (1) \| Respond to of 312280

Hi RetiredInAus! I do not have anything good to say about Sennen anymore, and have already taken some flak for posting. Originally I liked the company very much, and given their strong cash position and the promising property in Guyana I thought they would have a shot at success. Since my original investment in the company late last year, I have seen them squander the majority of the cash they raised in the PP, while completing only one phase of exploration on the property. The Makapa property is huge, and to give up on it after just a few drill cores is disgraceful in my opinion. The management claims this is to preserve capital, but I would question, preserve it for whom? They have rung up an impressive list of perks and fees for their own expenses, and even with all exploration halted the burn rate is huge for what basically amounts to ineffective, part-time management. I am not bitter, because in this game you are bound to make mistakes and the appropriate decision is to move on. However I am somewhat embarrassed as I was entheusiastically pounding the table on this one for 6 months and obviously my outlook was overly optomistic. I have not sold my entire position however as the company has backed into the asset value of their coal properties and they will unlock this through a JV deal sometime in the future, if only to secure additional capital with which to continue their plundering of the treasury. My philosophy is to hold on to a company through the volatility as long as the business plan remains viable and the integrity of the management is beyond reproach. Well as you may have surmised, I have some issues now regarding the integrity of management, so I sold most of my holdings and took my lumps. I spoke with various people on the management team during the year and visited their office in Vancouver this summer, but the story that I was informed of and the reality the company opted for were two very different extremes. If I was just considering buying at this level and willing to hold as long as it takes to see a deal closed then perhaps my outlook would be different. To anyone that considered my comments on this company in the decision to buy a position, please accept my apologies. cheers! COACH247