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Gold/Mining/Energy : Maxam Gold Corp. OBB:MXAM -- Ignore unavailable to you. Want to Upgrade?

To: Paunch who wrote (6166)	10/18/1998 1:25:00 PM
From: Larry Brubaker	Read Replies (2) \| Respond to of 11603

Paunch, I don't think these these companies are scams as you've defined the term. Probably my biggest gripe is the way they all spin their PR to only tell the good news and not explain the bad news. That plus the fact that somebody always seems to know the bad news beforehand. My skepticism would be much less if they were more forthright with their shareholders. Case in point is Maxam's fall from 75 cents. It went to 75 cents on speculation of good news prior to the AGM (remember prior to the AGM, Maxam was on record that 1,000 TPD production would begin in April). At the AGM, we were told that 1,000 TPD production was out, but were given the 10 TPD pilot plant to pin our hopes on. It wasn't until the share price fell to about .13 (when I sold) that we were given the news the pilot plant also fell through. So, it seems to me that (1) somebody knew the pilot plant wasn't working because it was sure reflected in the share price prior to the public announcement, and (2) they never explained what the problem was except for something about permits and not allocating the funds necessary to upgrade the plant (that they had supposedly just built). They never explained why they would have built a plant without thinking about permits in the first place, nor why they would need to allocate funds to upgrade a plant they just built. Take this circumstance and multiply it a hundred times for previous Maxam broken promises and broken promises by the other dirts. Add in the fat pay checks Lee Furlong and the boys at IPM were writing themselves while claiming the chickens were on their way home to roost, and you have the recipe for skeptical ex-shareholder stew.