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Gold/Mining/Energy : Adamas Resources (V.AMS) -- Ignore unavailable to you. Want to Upgrade?

To: GolfWhiskey who wrote (1295)	11/9/1997 11:07:00 AM
From: Sawdusty	Respond to of 2015

Hi George. You can take off your asbestos suit, at least where I am concerned :-). Interesting thoughts, we will have to see how they play out. BTW in my post #1280 I said "If they come through and move the stock in a substantial way then I do not think too many will particularly care if one of the methods used was to issue options to the right people." I am quite willing to wait a few more months. Regards, Dan ps: sure would like to know how you format the info so that it comes out readable. Everytime I try it is a disaster.

To: GolfWhiskey who wrote (1295)	11/9/1997 11:32:00 AM
From: Rook	Read Replies (1) \| Respond to of 2015

George, you invited responses so here they are: G: "The main reason I'm staying for now is the amount of private placements that have been taken down by insiders in the past year. Especially at higher prices than where we are today." How are you going to feel if and when they announce with great fanfare that they have issued a private placement for 5 million shares at 20 cents (or heaven forbid even less)? This will allow them to make a very handsome profit by promoting the stock only up to 30 cents. G: "As long as these shares have trading restrictions on them, I don't think there is any chance of any real promotion happening." You are probably right. Which begs the question, why are we paying Ms. Shields $5000 a month to sit on her hands? No wonder Adamas is always looking for cash when they throw money away with no thought. G: "There is no way that the insiders want this thing running until they can sell" Agreed. Unlike us shareholders who are always hoping for an increase in share price, management hasn't shared the same goal since March. G: "I think you guys are being pretty hard on Mr. Skopos and his activity of the past couple of months." Really? You obviously don't have very high standards for management. At the very least, we should want someone who shows unwavering confidence its future. Selling stock at 22 cents is the exact opposite of that. G: "But with the time delays allowed in reporting insider trades this doesn't mean there hasn't been any more. We'll just have to wait and see." We can wait a long time and we may still never see. Offshore accounts and accounts operated under friends' names are commonly used by VSE insiders to hide the fact they are bailing out on their company. The situation is never better but it is often worse than what the official insider reports show. I will give Mr. Skopos credit. He was honest enough to show us his true colours only days after getting his position. Shareholders now know that AMS has a director that is into stock flipping more than helping with the long term growth of the company. G: "So what does this mean? Is this guy being greedy? Is he just out to make a few grand at a time? -- I don't know, but I don't think so." Unfortunately, the evidence suggests the worst. Your hopes are based on wishful thinking. G: "If Mr. Skopos had done all his buying on the market, it may make some shareholders feel a little better, but it doesn't get any money into the company. It just gives some other guy an exit." Buying on the open market does more than make some of us feel better. It sends a clear message to the public that the management has faith in their company. It also clears out the sell offers which are holding down the price of the stock and because buying moves the price up, it allows future private placements to be made at higher prices so that more money will be coming into the company. So although Mr. Skopos may have put a quick $46,000 into the budget (petty cash with the way these guys operate), selling 100,000 shares of AMS usually knocks the price down by about 3 or 4 cents, so $150,000 to $200,000 of potential private placement money was lost. G: "My feeling is that if the board is awarding him more options to replace the ones he used up on his 'semi-private placement' ;-) then I don't have too much of a problem with it." I certainly do and so should all shareholders. If options must be handed out, wouldn't you want them to go to a person who holds on to the stock because he believes in the future of the company rather than to someone who thinks that 22 cents is a good selling price!? It's time for Adamas shareholders to stop looking for ways to excuse this very poor management. We all deserve better than what we've been getting, and it's time to start demanding it.