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Gold/Mining/Energy : Geodex Resources - GXM.V (was Agate Bay ABE) -- Ignore unavailable to you. Want to Upgrade?

To: fivedollar who wrote (156)	6/22/1998 12:33:00 PM
From: Baywall	Respond to of 210

Five Dollar, Thanks for Redell Mining example. Could you provide us with a good example of an ideal firm to invest in. This may save future investors a lot of money and grief. Investing for fundamental reasons sounds prudent. Royal Bank stock etc. maybe. I am not going to hide behind Busang or the price of copper. The junior spec market is dangerous at the best of times. But what evidence is there of deliberately misleading shareholders by mgm't? Maybe I missed something. Can't blame analysts, at least initially, as the sell off occurred well before any buy recommendations were issued. Whisper campaign? Rumours are naturally attractive vehicles to go after, well before any news release. Speculators were caught on rumours. Technically, it was a sell well before Oct3/96. The private placement of May 1996 was sold conveniently before prices fell. A reverse divergence in a few indicators proved itself accurate. When a security takes on a rapid advance in price and goes sideways on heavy volume, caution should be taken in such an event. Pg.50 The Investing Edge Booklet. In hindsight, all analysts, despite being aware of no financing and that dilution would revise NPV share values downward, still issued buy recommendations. You will not phone management, yet this was the case in the past. Ok, I will respect your action, but not because management is accused of lying. The best in your future investments. LVL

To: fivedollar who wrote (156)	6/22/1998 5:05:00 PM
From: Baywall	Read Replies (1) \| Respond to of 210

Addendum: "One of the most common experiences is that speculative investors get emotionally attached to their stocks and thus almost give them superhuman capabilities. For example, an investor may own 5000 shares of XYZ at 20 cents and already have decided that they will sell at $5.00 because this is what they have been told it is capable of. The stock runs to $1.50 on heavy volume but the investor has decided in advance to hold. Ignoring the possibility that XYZ Ventures may not exceed $1.50, he holds his position and the stock begins to decline. Quoted from pg.46 The Investing Edge. The junior market plays a role. Many deposits were found by juniors who put up the risk capital. The deal with Cyprus may have been viewed by some to be expensive. Questions of financing and excessive dilution existed. Management went forward with this project confident financing would be obtained. They may have thought that prices would later increase upon proving up the deposit, and thus later financing would have a lesser effect on dilution. At best the project may have been too large, but they wanted an advanced stage project. Previous poor "grassroots" results in May 1996 may have played a role in selecting an advanced project. The above are my guesses only. I don't know the circumstances of Redell Mining, but it would be difficult to compare each firm which rollbacks and issues share for debt financing with Redell. What did the insider reports say when the stock was at $1.30, that hinted of lying? What will happen after July 7/98? Inmet legally has not defaulted and Kaiser notes other intermediate firms have been looking. Can Geodex find another JV partner? What about financing and dilution issues? We will have answers to one or all. If I lose, so be it. I signed the brokerage agreement fully knowing the nature and risks involved speculating in the stock market. LVL