Cotton & Western Mining Inc. (CWRN)

[veritas2]

CWRN $1 PPS in 2011

That is just silly.

Anyone can play around with numbers, but there is nothing solid to back up those calculations.

Here are just a few of the problems with that fun-with-numbers doodling:

1. There is no independent verification of any "reserves" at all on any of the properties associated with this outfit, let alone any independent verification that they can economically extract 1.35 million tonnes of iron ore over the next 12 months.

2. Even if the Baja project generates any revenue at all, there is no way of knowing just how much of that revenue would belong specifically to CWRN. (There is no independent verification of the relationship between CWRN and Pan American Mineral Ventures, LLC. and Panamerican Minerals Ventures, S.A. de C.V. or whether there are any other players involved in those purported properties.)

3. Just because this company claims a 50 per cent operating margin doesn't make it true, so fiddling around with a 40 per cent margin is not necessarily "being conservative."

4. Nobody has a clue about the actual number of outstanding shares, so any EPS calculation (which is laughable enough) is even more laughable. (By the way, any EPS calculation in the real world is done with the total outstanding, not just "free-trading shares," so the use of 2.3 billion shares is hardly a "worst case scenario.")