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Gold/Mining/Energy : Naxos Resources (NAXOF) -- Ignore unavailable to you. Want to Upgrade?

To: GlobalMarine who wrote (14442)	7/19/1998 8:46:00 AM
From: Henry Volquardsen	Respond to of 20681

Vote to change management? Fine. But vote for who? Carl Campbell? No. His letter has already been shown to be misleading. Why trust him? Austin Lett? He sold a major stake n his partnership to the father of a Naxos employee who was to be instrumental in negotiating the agreement with him. A clear conflict of interest for the Naxos employee and very suspicious. Why trust him? On specifics of your comments: you state The problem is that a resource statement is useless without an economic recovery method to extract the resource. Wrong. A resource statement is essential in financing a mine. Recovery at the numbers Ledoux was certifying was not an issue. The problem is not that Naxos was pursuing a conventional resource statement. The problem was that Ledoux has turned out to have had a problem with their numbers. you state: The stock price is NEVER wrong Stock prices are frequently wrong on many equities. you state: the stock price decline in the face of the drilling and assaying program PROVES that such a program will not enhance shareholder value. I disagree. The stock price got up to $10 in response to the relentless hyping of the J/L process. The price came down when it became clear that they were unable to get consistent results. Even Carl Campbell says the process has changed. The decline from $10 was largely a response to the failure of J/L to prove it's relentlessly hyped claims. You can lay it at the foot of pursuing a conventional process if you wish. But ask yourself where the price would have gone if Naxos had never pursued a conventional resource and all we would have been hearing the last have year was a stream of explanations of why they weren't getting consistent results from J/L. The introduction of the J/L process got the stock price up to $9 because of the relentless hype of multiple ounce opt and a non stop stream of leaks and rumours all of which turned out to be crap. If they had ever been able to prove that at any point the stock would still reflect that. But even the J/L are non talking sub 1 oz opt and admitting the process has changed. Don't think for a minute that the stock price isn't also reflecting that J/L has yet to come up with the goods.