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Gold/Mining/Energy : Global Platinum & Gold (GPGI) -- Ignore unavailable to you. Want to Upgrade?

To: SnakeInATuxedo who wrote (4872)	1/25/1998 10:29:00 PM
From: JACK R. SMITH JR.	Read Replies (4) \| Respond to of 14226

This if from Ed Fishbaine: 1/25/98 Re: fundamentals vs technicals in GPGI There can be no question that the fundamentals for GPGI are extraordinary. There is no need to cite again and again chapter and verse supporting this conviction. Why then is this not reflected in the price of the shares? 1. The share price has come down on low volume since the January release. This in my view is because the long delays between news releases by Jensen has led many not very well informed shareholders to expect news of cash receipts far larger than the numbers released. They have been dissapointed and have sold. 2. Jensen is very unsophisticated in regard to public relations (witness the inadequacy of the Barrons article yesterday where he not only omits the exchange on which Global trades but fails to give the company1s address). This is aside from the failure to provide an introductory paragraph to the Auric letter which is simply plopped onto the Barron site without comment. Does not new blood need to be introduced step by step to the complexity of the Global story? At the very least I hope subsequent articles include the company address and the exchange on which it trades. There is a long history of failure by Jensen to provide information to shareholders. He does not put forth the issues clearly and omissions of explanations frequently leave readers uncertain. I know very well the frustrations of getting him to be clear and fully forthcoming and I certainly hope that DeNoble will do better than me in this regard. 3. I have no question about the basic honesty of Jensen. I also admire his guts and persistence and ability to raise money. Whatever is said about the deficiencies in his managerial skills he has kept this company afloat for 15+ years. However, he tends to offer as fait accompi what is only anticipatory. This has happened repeatedly. Just look at the web site. The latest is the January 6th statement that the the company 3is informed that it will be receiving a check (from Consolidated Noble) in mid January.ý Also: 3Upon completion of our audited financial statements in the next few days.....ý The reality about Jensen is that there is a pattern of incomplete and at times confusing or contradictory communications which cumulatively serve to undermine his credibility. I do not believe this is intentional. It reflects a limited ability to communicate clearly. The shares of Global should be selling today at $6-$8 easily on the basis of the extraordinary potential of this company. 4. Unfortunately Jensen also views this company as his corner grocery store and has attempted to do the work of 3 people. He behaves as though he is a one man show and this makes the market uneasy. Where is the back up.? Who is the back up? What if he is disabled?ý So, it is not chain of custody. It is not proof of reserves. It is not the lack of affiliation with a major company and it is not some mysterious hidden fact about the company as suggested by Zeev. It is, in large part, managerial deficiency in commuinication skill which causes the technical weakness in the share price. We pray that this will change in the near future. Jensen may be finally acknowledging that he has to delegate. In order for the shares to begin to reflect their true value money has to be spent on PR. Amongst other matters requiring PR improvement, what is the use of publicizing in Barrons when there is no investor package to mail out to responders. What I suspect will finally happen is that precisely because of the fundamentals this company will catch the attention of some big players and be bought out. We will all be relieved and Jensen above all will be relieved ( in two senses). It does not take a stroke of genius to realize that if you can produce a commercial check for $4,000 you can produce $400,000 and the $4 million when reserves are practically infinite. The leverage is enormous and the very fact of commercial production will catch the eye and then activate the testosterone of a pm company or perhaps a chemical company. By the way I agree with Zeev Hed that going for production rather than proof of reserves is the right move for which Jensen deserves much credit even though he has failed to offer documentation of why this is the way to go. Had he stated or had a representative state that this is his plan of action and the rational is such and such he would be far ahead in regard to the credibility which ne now so sorely lacks. Finally, my guess is that new management will be in place by the end of the summer. I do not have any information in this regard. This is a pure guess. So, my view is that the work of Twiford and Lamont plus the properties (why in hell has he refused to drill the Oro Grande?) will transcend the managerial limitations and we all will make lots of money. Regards, Ed Fishbaine