Register for free to join our community of investors and share your ideas. You will also get access to streaming quotes, interactive charts, trades, portfolio, live options flow and more tools.
Register for free to join our community of investors and share your ideas. You will also get access to streaming quotes, interactive charts, trades, portfolio, live options flow and more tools.
Thanks temeku and johnny for the recent report showing the huge piles of processed ore at the mine etc.
As masscommuter says there should be over 7 million revenue booked this quarter upon shiploading of the 42007 ton KRITON and presentation of bill of lading,if thats what CWRN contract specifies.
The 32 million is the apparent amount of the Documentary Letter of Credit,which would explain why the 12-30 PR conservatively(at that point in time) estimated 32 million 1st quarter revenue,when they already had 118,000 tons processed.
The spot at the presumed time of the final contract was ca $175/ton,though we don't know the actual contracted price due to competitive market reasons. At $175/ton $32 million would be just under 183000 tons for this 1st contract.
Apparently unexpected protracted negotiations over details(such as fuel costs)delayed shipping,along with other variables.
A big question is the amount of ore at port. 18 trucks and rising(soon after itmd's report of 15 trucks ca Feb 4,in concert with net loads and roundtrip times provided by pesquero, with customs closed at night),would yield ca 3375 tons trucked/day,as both temeku and I had estimated. Which would be almost 150k tons at port-though some have estimated much less. 150k tons would be too much to store absent unexpected delayed shipping or a second ship to closely follow the first.
Has trucking slowed due to shipping delays?
Does anybody have a report of amount trucked? Last known reports indicated production was exceeding trucking(at presumed 3375 tons/day)and there are at least several hundred thousand tons processed at the mine-which should yield a huge inventory figure for the quarter.
IF trucking and shipping proceed anywhere near projections,at least 2 ships with the speed(11-15 knots) and load(42000-57000 tons)of the prospective ships mentioned so far would be needed,so,as pesquero said months ago, a ship would be leaving every 2 weeks. So just because the Kriton is confirmed does not mean it will be the only ship CWRN uses in a rotation.
Delays are the name of the game,especially in pennys.
This is still the only penny I've seen transition to imminent substantial revenue,which will make the current pps extremely undervalued, no matter what the share count(which is a distraction from the seminal event of shipping and substantial revenue).
I posted earlier from wikipedia that ships at sea-at least those in water over 600' deep -are not usually affected by a tsunami -for at those depths there is usually a wave of only ca one foot
Pesquero said they were going to use a gondola(presumably airborne kind)to move ore to presumably the hopper you talk about and the hopper feeds the regular port conveyors,but ideas on loading have changed over time,so no guarantees as far as I know.
Handymax ships have their own self sufficient loading equipment because they often visit smaller ports that don't have loading equipment.
But I don't know if the water depth next to the iron storage(that area is not really designed for direct ship loading) would be sufficient for that-Handymax average 33' draft.
The port loading areas have been dredged to minimum 14.5 meters and navigation area 16 meters,thanks partly to our friend pesquero,whose company as I understand it was involved in the dredging -so he would be the expert on that.
The Ioannis speculated on is 12.8 meters(42 foot draft)-a new faster ship (15 knots)probably built w post Panama canal deepening in mind(because present max allowable Panama canal is 12.04 meters)-possible substitute for the stuck in Texas at last report Azuma,as well as speculation re other possible ships-all in the large Handymax to small Panamax size of 40k to 60k tons load.
There is so much ore at the port already-estimated anywhere from 120k tons to over 300k tons- they could load Panamax(60-80k but often ca 75k and average 39' draft)which is cheaper shipping/ton.
If we are really lucky they could get 1st 2 ships in this month to better show revenues for the expected mid April financials.
Much of the delay in shipping was apparently due to unexpected protracted negotiations,including dealing with the changing fuel cost.
Don't forget the large South central Baja mine for which CWRN will be the operational partner. Has anybody begun researching that? The board has largely ignored that mine mentioned in the 2-28 PR.
itmd's post re the retirement of 3B shares and the Aug 4 2009 PR re the same was post # 21351 on Jan 20,2011.
Standard rules of interpretation would seem to indicate you are right and that is how itmd,kills,myself and others made computations.
Otherwise,the iron ore price reports would be misleading,absent arcane or secretive insider knowledge.
A very knowledgeable person on this board had suggested the pricing regime masscommuter used and I reported that to masscommuter with suggestion to research whether that was correct because my preliminary research had been unfruitful.
The pricing regime(that would result in 108 in your example) seemed counter-intuitive and illogical to me,but I haven't had time to finish researching so I haven't said anything and try not to contradict those who are sincere.
If the 108 pricing regime is correct some of my questions were:
-why didn't those on the other side of the aisle point out such an egregious flaw in itmd and my and others computations when they were quick to correct any little item and had 100 reasons why Cwrn could not succeed-and one of these was very knowledgeable about the iron business.
- Also,why wouldn't Bullitt-who must know- have likewise corrected itmd and my etc calculations.
I've been researching this on the web but have not seen any explanation of a pricing regime other than what meets the naked eye-which would seem to support a simple literal, natural(requiring no arcane or insider knowledge)reading of the iron ore indexes.
Re O/S, yahoo and some business newsletters rely upon outdated last filing of Oct 7-09-which indicated the 5 B figure-yahoo reports its figures as of 9-30-09.
But as itmd pointed out some time ago CWRN retired 3 Billion of those shares-there was a PR re that itmd said ca Aug 4,2009 I believe.
So it would make more sense to use current otcmarket(pinksheet)O/S of 2.308 Billion and then adjust for presumed shares issued since last known float of 299 million last spring.
CWRN probably issued shares for incidentals last summer but would not be able to raise much money at the then low extant prices-and it wouldn't make much sense to issue billions of shares at those low prices when they knew they would be buying them back at much higher prices.
I figured the backers said they would get the equipment and assigned CWRN to get the permits-but as Bullitt said CWRN did not have to pay for current area they are mining -they grandfathered on the old CEMEX permit-so they only had permit fees for another portion of 14 and for 4 and possibly another area-which if those fees were 70k would've cost only 35 million shares.
We know they have substantial debt financing as the vast majority of their financing,and Bulitt said the first ship would pay off that debt.
And last PR shows financial backers are willing to back much bigger CWRN projects,such as the new much larger mine in South central Baja which has been largely ignored in the midst of all the games played by special interest groups,which is a further confirmation of debt(not share) financing.
Even the small financing Feb 2010 of $50k was debt-though convertible-so there would be no indication of issuance of billions shares since then.
People have guessed current float of 350 to a billion plus.
Interestingly TD shows O/S of 2.6 B,which is close to what I would think,but I don't know where they get their info either.
They obviously wanted some revenue and possibly buyback before posting financials,but pressed by the ce,which they indicate will be resolved "before the end of March"(2-28 PR),they may issue current financials(meaning through 12-31 unless...) this month-that's the only way to resolve the ce this month(besides the pinksheet fees which they report as paid now).
At any rate they report audited financials will be issued mid April and buyback on a ship by ship basis-remember the retirement of insider shares also.
The following news story would indicate Rio believes their shares are undervalued-hence their intended 5 billion dollar buyback this year. Other large mining companies-e.g.BHP are buying back also in light of a more bullish iron market.
Also the "crippling 40 billion dollar debt" from a 2007 acquisition has -without presently time to research further-hurt their PE-sites indicate they still have more debt than cash-though the current ratio may not be known either.
Rio Tinto’s 2010 Profit Triples on Iron Ore Price Gains
By Jesse Riseborough and Rebecca Keenan - Feb 9, 2011 10:11 PM PT
Rio Tinto Group, the world’s third- largest mining company, said second-half profit more than tripled as a global economic recovery boosted prices for iron ore and copper.
Net income rose to $8.5 billion in the six months ended Dec. 31 from $2.4 billion a year earlier, the London-based company said today in a statement. That compares with the $8.6 billion average estimate of 12 analysts Bloomberg surveyed. The company also announced a $5 billion share buyback by the end of next year as full-year earnings also tripled to $14.3 billion.
Chief Executive Officer Tom Albanese plans $13 billion of spending on expansion and new mines this year to boost output as commodity prices rise. Rio is being urged to increase returns on funds as global economic recovery adds to its cash pile, fueling a reversal in fortunes after the 2007 acquisition of Alcan Inc. that led to a crippling $40 billion of debt.
“GDP growth in emerging markets and supply constraints mean the general market and pricing outlook for commodities remain positive, albeit with elevated risk,” Albanese said today in the statement. Rio Tinto is reinvigorated, running strongly and benefiting from favorable markets
Rio declared a final dividend of 63 cents a share ...
The following news story would indicate Rio believes their shares are undervalued-hence their intended
Rio Tinto’s 2010 Profit Triples on Iron Ore Price Gains
By Jesse Riseborough and Rebecca Keenan - Feb 9, 2011 10:11 PM PT
Rio Tinto Group, the world’s third- largest mining company, said second-half profit more than tripled as a global economic recovery boosted prices for iron ore and copper.
Net income rose to $8.5 billion in the six months ended Dec. 31 from $2.4 billion a year earlier, the London-based company said today in a statement. That compares with the $8.6 billion average estimate of 12 analysts Bloomberg surveyed. The company also announced a $5 billion share buyback by the end of next year as full-year earnings also tripled to $14.3 billion.
Chief Executive Officer Tom Albanese plans $13 billion of spending on expansion and new mines this year to boost output as commodity prices rise. Rio is being urged to increase returns on funds as global economic recovery adds to its cash pile, fueling a reversal in fortunes after the 2007 acquisition of Alcan Inc. that led to a crippling $40 billion of debt.
“GDP growth in emerging markets and supply constraints mean the general market and pricing outlook for commodities remain positive, albeit with elevated risk,” Albanese said today in the statement. Rio Tinto is reinvigorated, running strongly and benefiting from favorable markets
Rio declared a final dividend of 63 cents a share
The figure on yahoo is also outdated -it specifically notes it is from(CWRN's last filing of Oct 7 2009 )and as of Sept 30,2009 before 3B were retired. And business newsletters just repeat whatever figures they can get from somebody else -like the old yahoo or pinksheets filing-without any dd or verification of recent structure.
We've been over this some weeks back. That was from the Oct 7,2009 filing as of 9-30-09. It was about that time that there was a PR from the company that they were retiring shares-believe Aug 4,2009. Itmd has noted this-and said that 3 billion shares were retired since then-in a post month or so back?
Otcmarkets(pinksheets)now shows 2.308 B shares outstanding. It would be more relevant to use that more current figure than the old 2009 figure before retirement of 3B shares.
Most assume they issued some shares last summer to pay for incidentals associated w the startup but the vast majority of financing has been debt financing and Bullitt recently said the first shipment would more than pay off that debt,and last PR says those backers are willing to finance bigger ventures-people seem to have forgotten about the second larger mine for which CWRN will be the operational partner.
Even before the current financing they were trying to raise funds via debt but filings only show $50k raised in that manner-2-10.
Last known float before last summers activity was 299 million. Most assume float maybe doubled-the share price was too low to raise a substantial amount and it would not make sense to issue billions of shares at that low price when they knew they would shortly have to buy them back at a huge premium.In such a case debt financing is much more economical.
Presently probably used for long sea voyages like trans Pacific until the Panama canal is enlarged/deepened(expected for 2014 last I knew),for at 12.8 m it slightly exceeds canal min of 12.04 meters. Much faster than the Azuma-ca 15 knots.
Panamax are usually built very close to min depth/width of the canal (which acerbates the canal workers)-which is 12.04 meters-39.5 feet and average 39' draft. Handymax average 33' draft.
Though Panamax usually are 60k to 80k tons-w 75k often quoted,so on smaller end of Panamax if 56k.
I would think they have at least 100k tons at port-temeku estimates 151k or more by Mar 17,so hopefully once the shipping begins,a ship could be departing every 2 weeks as pesquero said some time ago.
From Wikipedia min DEPTH of Panama canal:
"In tropical fresh water 39.5 ft (12.04 m). ACP uses the freshwater Gatun Lake as a reference. The salinity and temperature of water affect its density, and hence how deep a ship will float in the water. When the water level in Lake Gatún is low during an exceptionally dry season the maximum permitted draft may be reduced."
Every indicator is that the vast majority of CWRN'S operation has been financed by debt-not issuance of shares-except for incidentals such as permits,which were surprisingly inexpensive. This financing by debt was seemingly confirmed by the last PR which said CWRN's U.S. backers were willing to finance additional larger mines.
Given the low share price prevailing from July to September when CWRN might have financed some with shares,not much money could be raised that way. They probably doubled the float, maybe more to pay for incidentals. Besides,it wouldn't make a lot of sense to issue a large amount of shares(billions) when you knew you would be buying them back in a few months at a much higher price.
At any rate we know they plan on buying back 60% of the float as soon as practically possible on a ship by ship basis(PR)in combination with a substantial reduction of insider shares.
Even more important is Bullitts statement (in answer to a post) that the first shipment will more than pay off the debt.
The reason for all the games is CWRN'S imminent transition to substantial revenues-an extremely rare event with every type of group rushing to profit by ANY means.
I don't know of any penny stocks anywhere near this price range making over 10 million revenues /month as CWRN should once shipping starts. I doubt there are any under .50 with 5 million net profit/month,as we would expect once shipping starts.
Some of these recurring question answers should be in the stickies as many have said.From my December 17, 2010 Post # 32320
Regarding questions in PR about buyback and retirement of shares,which have been twisted to mean something negative.
In the PR's,"buyback" applies to buying back ca 60% of float, whereas RETIREMENT applies to retiring possibly the same % of BOD(Board/insider) shares.
This is a rather common procedure when companies make the transition to substantial revenues. The best companies in the 1 to 2 dollar price range reduce shares to ca 20-50 million because otherwise shares are undervalued vis a vis book value and revenues and thus prevent hostile parties from buying the company cheap on the open market etc.
There are 2 different things that will be occurring
1)BUYBACK of 60% of the float
2)RETIREMENT of a % of BOD shares-they don't "buy back" these because they already own them-thus the wording STRUCTURED PLAN COMBINATION of buyback [of float] AND RETIREMENT [they retire BOD shares in a structured manner as % of float is retired]
Examples of structure:
1) for every share of float bought back,one BOD share will be RETIRED
2) for every 10% of float bought back, 10% of BOD shares will be retired
They also say they don't see themselves on OTCBB past 2011-this is an important clue-because,in the calculations I and ITMD worked out, the only way they will have sufficient share price to move to major index in next 12-18 months is to retire a significant % of shares held by the directors also.
The PE ratio could easily be 50% or more higher on major exchange because pinky land penalizes revenue producing companies(who are no longer speculative,while usually-but not in CWRN's case- ridiculously rewarding speculative future income w share price 20 to over 100 times book value)-which is one reason they would want to move to a major exchange ASAP.
By RETIRING BOD shares in a STRUCTURED ratio IN COMBINATION w BUYBACK,they increase share price sufficiently to move to a major exchange(w one dollar min share price) in possibly 15 months-otherwise perhaps twice as long or more.
So retiring BOD shares in COMBINATION w buyback of float actually increases BOD (and float)valuation because they will get a higher PE ratio on major exchange and thus insider shares AND float will be worth more than they retired.
Nov 22 PR:
2. Review the issued and outstanding public share structure and vote on the number of common shares that will be made available to the public[that is,decide how many shares they want available in the float, for]. The Company is contemplating a treasury BUY BACK program for sixty (60%) percent of the public free trading common shares[FLOAT] in year 2011.
Officers, Directors and Affiliates [all of which are insiders] currently hold over sixty (60%) of the outstanding common shares . The B.O.D. has voted to incorporate a STRUCTURED Plan that will provide for a COMBINATION of BUYBACK and RETIREMENT of COMPANY[i.e,BOD shares] common shares that will balance[probably keep the same % of insider shares vs the float] the control of voting shares in favor of the Management. At this time all of the Officers, Directors and Affiliate company Pan Am, each holding more than ten (10%) percent of the outstanding shares and are subject to SEC rules regarding trading of said common shares.
3. Review the common share count percentage held by affiliates and insiders[w a view toward retiring a % of such shares]....
By consent; the Directors of LLC., U.S.A. shall RETIRE by deleting a percentage of common shares now held[by Board] as[at the same time as float is bought back,company shares will also be retired in a structured plan COMBINATION] new common shares that are accumulated through the public market[i.e,buyback] beginning in the later part of the first quarter of 2011.
This is referring to retiring a % of insider shares.
If they buyback 60% float,they may also retire 60% of insider shares to maintain same % ownership by insiders vis a vis the float.
The PURPOSE is to REDUCE TOTAL SHARES ASAP to raise share price to facilitate the earliest possible move to a major exchange ,where the games played by certain negative special interest groups will not be efficacious.
PR points on the subject:
9-30 PR: 'item #3 Review share count held by affiliates /insiders"-what for-Bob and his family are the insiders -they already know # shares they have, so in context of item 2, see:
11-22-10 PR item #2 talks of buyback and then says BOD hold over 60% of common shares.
"The BOD has voted to incorporate a STRUCTURED PLAN that will provide for a COMBINATION of BUYBACK AND RETIREMENT OF [the companies-that is insiders] common shares[i.e,BOD shares]......
The previous ref to 60% ratio implies they will keep same ratio(make sure BOD has voting control-normal)
BOD voted to retire BOD shares in COMBINATION w buyback.
The ingenuity of people w ulterior motives to misdirect/destroy is amazing.
The buyback and retiring of perhaps 60% of TOTAL[both insider and float] shares is an EXCELLENT thing that will greatly BENEFIT ALL SHAREHOLDERS.
There is no cancellation of all shares as somebody intimated.
The reason for cwrn's ce has been noted many times -a game by special interest groups that lost control of the action. OTC trading desk personally told me there was no indication of fraud-just a perceived promotion. Nobody has even provided evidence of any promotion. CWRN says the ce will be cleared up this month -which would require filings this month-so give them a chance to do so.
The SEC has better things to do than interfere in an ongoing resolution of the ce. The courts don't get involved in things which are already in process of resolution-basic rule.
Quiet stocks that do not have potential are not attacked by special interest groups. CWRN is the first penny I've seen transition to substantial revenues. Therefore it is number 1 on the target list for manipulation as everybody tries to profit from such an unusual transition.
Iron was ca $28/ton 7-7 1/2 years ago. Its now ca 650% higher,which is why there are 50% net profit margins. So the price of iron has gone up much more than the price of oil. Thus, this increase in the price of oil should not have that much impact.
The otc site further says:
Issuers of OTC securities quoted on the OTC Link system have no duty to provide any information to investors. While many issuers register OTC securities with the Securities and Exchange Commission (SEC) and may provide regular reports to investors in connection with such registration, issuers are not required to maintain such registration or provide such reports because their securities are quoted on OTC Link. Securities may continue to be quoted on the OTC Link system if issuers are delinquent in their reporting obligation to the SEC or other federal or state regulatory agencies. Quotation of a security on the OTC Link system or the Yellow Sheets does not in itself create any ongoing filing or reporting obligations with the SEC for any issuer. In many cases, issuers may not even be aware that their securities are quoted on the OTC Link system.
If you look at my posts from Jan 13-14,otc trading desk slapped cwrn w ce because of a "perceived promotion".
After the 12-30 PR etmm lost control and stock price jumped day to day and intraday causing special interest groups to complain to otcmarkets that there was a promotion.
OTC looked at the rapid price jump and volatility(their words) and it "LOOKED LIKE' there had been a promotion because in over 99% of such cases there is a promotion by multiple penny stock newsletters,so in fulfillment of their duty to protect(such as it is)they slap the ce and ask questions later.
Btw they told me there was no evidence of fraud so the ce has nothing to do w the SEC.
TD Ameritrade was on that list and had nothing to do w filing financials.
Transparency has been increasing on the generic otcbb-especially since 1999,but companies are still given a choice of many transparency classifications,including the "no info" and grey market (over 20000 companies alone)classes.
The no info class and many grey market companies have no posted financials. Where is the rule requiring posting? The only rule I know is if you don't have posted financials and get slapped w ce because of perceived promotion(CWRN's case)you have to bring filings current to remove the ce.
CWRN did have postings until Oct 2009 and was in limited info category until that time.
On this board those who are not longs often try to create a connection between pinksheets and the SEC. You don't have to be SEC reporting to be on pinksheets. Most companies on pinksheets(ce,grey,no info,limited info and current info classes) are not SEC reporting.
I don't know whats going on w the DTCC thing yet-just catching up on my reading here-but 2 possible elements come to mind
1)-CWRN has been seriously shorted by a particular mm beyond several peoples previous experiences for many months and that mm sent out a signal it needed shares the day or so before new shorting rules went into effect
2)CWRN has said for a long time they would be changing their cusip # early this year.
I am not familiar w the DTCC thing so don't know if there is any connection between these things but others have mentioned some of this. Apparently reliable postings have previously indicated when there is a cusip change all naked shorts and apparently all shorts will have to cover
Remember,in that fast moving scenario,it probably was not Bobs intention to post the 2nd PR w detailed offer info.
If it was Bobs intention to post detailed buyout info ,wouldn't he have included that detail with the first PR?
It has never been Bobs practice to nor does it make sense to post the 2nd PR only 1 day after the first.
We know that Bobs legal counsel advised Bob to post the 2nd PR.
The logical conclusion reached by many is that Bobs legal counsel advised Bob to post the 2nd PR(with buyout details)AFTER the 1st PR had been posted and AFTER talking with our friend.
So, case solved without maligning the reputation of a CEO who has been far more open and reachable than any CEO. Most people who have personally spoken with Bob have found him to be open and honest. The worse most have said is that he can be a bit naive-but aren't we all in some areas of life?
The upset poster,from his previous posts, had always found CEO Bob to be open and honest also.
The only logical conclusion is a misunderstanding based upon changed events-legal counsels advice-AFTER talking to our friend.
And there is always the possibility of a substitute ship as the PR mentioned.
I will answer briefly but I provided more info in my posts months back in answer to another posters persistent questions re this issue-who eventually came over to the long side.
The only reason the Mexican company was created by CWRN was to comply with Mexican mining laws. The Mexican company is private. It does not have stock of its own-so the only place the revenue CAN go is to CWRN shareholders. It is de facto a wholly owned sub though CWRN calls it an affilate presumably to comply w Mexican mining law.
Many PR'S include the following language:
"The Baja Pacific -- "Mina Guadalupe" is operated by Panamerican Minerals Ventures, S.A. de C.V., Ensenada, Baja California, under contract with CWRN and held in trust for CWRN by its principal officers and directors, Robert L. Cotton and Sharon Vazquez.
Who is CWRN? CWRN is the stockholders.
So this contract/trust is for the benefit of all CWRN stockholders.
As you can see from the pictures Bob and Sharon(who I believe is his wife-not just girlfriend)are happily married and working w each other. (Lots of people-especially when they have to work around or with machinery don't wear their wedding rings).
Sharon is Pres of Mexican co w Bob as VP-to comply w Mexican law -since Sharon is a Mexican national.
Bob and Sharon have CONTRACTUALLY REPRESENTED to CWRN shareholders that via the contractual relationship tying the 2 companies together that all revenues will inure to CWRN shareholders-which include Bob and families closely held 1.75 B shares.
They have represented this continually and consistently so they are BARRED/ESTOPPED from denying or breaking this contractual relationship w CWRN stockholders.
So there is a CONTRACT. Violation of the contract would bring legal sanction.
There is a TRUST. All property of the privately held Mexican company legally/contractually belongs to the parent CWRN VIA THIS TRUST.
If you make a will or trust to pass on your property,the courts will enforce that will/trust/contract absent considerations that are not relevant here.
By representing this relationship and even noting it in PR's,this also separately forms a de facto contract w every CWRN stockholder,each of whom could sue for violation of contract.
So,for Bob and/or Sharon to do anything else re the revenue would subject them to legal sanction. If they were to take the money they would be lifelong fugitives-which makes no sense since it took their entire lives to find this successful formula-and many entrepreneurs never find the formula.
And CWRN would still exist and keep operating w a new Mexican national "overseer" and revenues would still inure/belong to CWRN stockholders. And Bob/Sharon would forfeit their shares so CWRN float holders would have final say in the operations and probably have a pps share increase(after initial uncertainty) due to the reverse dilution-i.e Bob and Sharon forfeiting their shares.
All "western" countries recognize and enforce private property rights. Absent a Mexican revolution/Mexican nationalization and forfeiting of private property rights.
imo
The article had problems w there math. the .15 price was only 5.555 times above the reputed .027 price at the time of the offer,but the rest of the article says:
"The Management of CRWN, Cotton & Western Mining, took the prudent step in quickly rejecting the offer and providing a copy of the press release with contact information on the firm that provided the buyout offer–this of course now puts pressure on Freedom Network; as, the firm will have to quickly offer details on the offer–or as it often happens in Penny Stock Land…quietly sulk away."
"For the day, shares of CWRN actually rallied twenty six percent to end the day at $ 0.0259 on Volume of 55 million shares. Speculators, it seems, are betting that the beat down from yesterday—may translate to a buying opportunity. This round goes to CRWN Management."[emphasis added].
So -an outside source that says CWRN did the prudent thing-though most on this board agree the 3-1 PR was unfortunate-but Bob had no choice as per legal counsels advice. Get everything out in the open. Thats how Bob approached the ce problem-tackle it head on. And they are working on financials to post and move to greater transparency.
Eventually revenue will significantly increase pps.
I agree. I would buy up the float and take the company private rather than deal w these ridiculous penny land games. One of the reasons they will be buying 60% of float and will probably continue to buy float after that(that is standard practice-even the big iron companies are spending 5-10 billion to buy back float this year)and retire a large % of insider shares is to raise stock price high enough to escape penny land and its perverse games.
The only real attack out of hundreds of "it cant be done" arguments left is that first shipment hasn't occurred. When shipping and substantial revenues begin what will the arguments be then?
Hopefully the arguments will have no real effect anymore because a larger pool of real investors who see the bottom line of substantial revenue will push the price up.
Several posters here including temeku and surrogateson etc have personally visited the mine and pesquero,who I believe provided the first independent pictures of the mine. Temeku has noted he's going to be visiting there to greet the ship and stay til the ship leaves and has invited others to join him.
Maybe Bob has had bad experiences with delegating Investor relations(IR) to someone else or just generally enjoys it. Plus if there is more than one person performing IR duties that could lead to MORE misunderstandings,which is why companies and politicians have a designated press secretary/spokesperson.
Bullitts post today that the revenue from the first shipment would more than pay off the debt(which could not have been funded via issuance of shares-even the 2-2010 fundraising of $50k was via debt-though convertible,not direct shares) should answer some of these questions. Since the Mexican sub has no shares of its own and was created by and for CWRN the CWRN shareholders defacto own the Mex sub,of which Sharon is one.
There are always misunderstandings and maybe Bob just dropped the ball on this one. Especially in his conversation with killswitch(Bob may have been exhausted from all the activity or having a bad hair day)but that doesn't change the production confirmed by more pics and personal visitation and communication and general openness with and by the company than I have seen with any penny company.
Or maybe Bob got attorney advice to post the buyout offer AFTER talking to killswitch-lots of what ifs in that fast moving scenario.
I don't have personal knowledge of this but previous posts have explained it this way:
Even if tender offer was legit and was made does not mean people would get the tender price as previous posts have explained.
If they set aside 1 million dollars to buy 5,555,555 shares at .18, that one million dollars would be diluted among shares tendered. If 10 times that number of shares were tendered,you'd get only 1.8 cents/share and have no idea how many shares are tendered and cant withdraw your shares once tendered-so sounds like a poor way to handle it,if the previous posts are correct re this.
Even if that is not true, I think its best the whole episode is left behind as it has detracted from the real story of actual production and soon shipping-not to mention a much larger concession for which CWRN is going to be the operational partner-which has almost been ignored in the games played the last 2 days.
Several people,including myself, called freedom and spoke to the harried rep. When people questioned he just got frustated and defensive and ...
But it doesn't matter as you know because,as I suspected, Bob was not interested(as per Hobie 3 's email reply)and merely posted the info under attorney advice to comply w disclosure requirements.
Re the separate debate of no 13D filing seen yet,Bob probably delegated that,so as far as Bob is concerned the filing is done but may still be in transit or just received by feds-so give it another day or 2. The PR was only 3-1 and the pics etc are not fake.
There you have it people. Confirmation from CWRN's production manager that the very first shipment will not only pay all the debt but greatly exceed the debt.
So,as the 2-28 PR says,they could start using some of those revenues to start the buyback on a "per ship" basis.
They previously noted they were 3 million under budget and they would have to be for first ship revenue to cover all debt "many times over".
To my knowledge a company can only be suspended for fraud.
There was not even any suggestion of fraud otc(pinksheets) told me re the ce issue-so this is NOT an SEC matter.
And as noted by others CWRN was required to post the buyout offer under advice of legal counsel and had no part in any scam re a proposed buyout.
You can't get suspended for not having current filings.
All of the following pinksheet classes are without current filings and have over 25000 companies:
ce-100's or thousands of companies get this,including most companies promoted by penny stock newsletters and you have traded those stocks without even knowing they were ce and many were ce for reasons other than a promotion,
grey market-last I looked there were over 20 thousand companies in the grey market alone,
no info-which is what CWRN was before ce
and limited info-CWRN until they stopped filings to save legal/accounting/pinksheet fees.
The 2-28 PR says this issue will be taken care of THIS month. Since they know current filings are necessary to resolve this issue to receive "current info" status they seem to be saying they will post current financials(which means at least through 12-31) THIS month. They plan on posting 1st qtr financials mid April.
Shipping begins March 17. I have challenged for a long time to find another company with pps this low that is transitioning to this magnitude of substantial revenues-and nobody has even attempted to put forward another example. I haven't been able to find anything comparable to this after researching thousands of penny stocks since I bought CWRN Aug 2009.
Every penny company and many blue chips that I have been aware of has had substantial delays-usually numerous amounting to multiple years. But this company is in 24/7 production-see the pictures of the night shift under lights posted by more than one person.
CWRN is the only junior miner I've seen go into production since I first bought CWRN Aug 2009-it is a very rare event.
OTC trading desk told me the reason for the ce was a perceived promotion. They received complaints of a promotion and when they looked at the charts-the incredible price rise following the 12-30-10 PR, with daily gapping and even intraday gapping it LOOKED LIKE there had been a massive promotion. But that wasn't the case and nobody has even attempted to provide evidence of a promotion.
The share price had been artificially depressed for so long in what many described as an unprecedented fashion that when people realized this was a real company progressing to substantial income the groups artificially depressing the price lost control.
There was never even any suggestion of fraud otc told me.
See my posts 18429,19117,19261 and 19537 on Jan 13-14.
I know you are familiar w this but for others see my post 14301 Dec 17 for explanation of the structured plan-which includes a comparable retiring of insider shares-which was a difficult concept for some. They will be retiring(they don't buyback these because they already own them)a substantial % of the insider shares also.
I agree. Financials are great if there is revenue or pertinent expenses re ramping up of operations,but there was neither til last summer. I read all the last posted financials. They didn't provide any useful info due to the lack of financing/operations,so statements were most likely stopped to save the extra legal/accounting/pinksheet fees.
CWRN intended to wait for revenues to begin filing financials again. So special interest groups are beating a dead horse by shouting "no revenue" or "no shipping" when they are very aware substantial revenue begins within weeks.
Special interest groups had a litany of reasons why there would never be any shipping and those reasons have one by one been disproven by proof of CWRN's progress.
The only step left is the actual shipping of the ore already at the port-which should already substantially exceed the ships tonnage-see below.
Last reported # of trucks(18 "and increasing daily")at the loads and round trip times stated by pesquero would be ca 3000 tons trucked /day w 24 work days(reported 1/2 day Saturdays),or 72000 tons/month. If the trucks made 4 trips/day that would be 3600 tons/day.
If there is 3000 tons/day w 18 trucks,25 trucks would be 100k tons/month-two 50000 ton ships/month. They have already said that with the addition of the third shift that they are producing more/day than they are trucking and they had a 165k ton mine stockpile before they began trucking-to make sure trucking and shipping,once started,would be continuous.
In posts weeks ago itmd provided evidence(may have been a PR also long time ago)that CWRN had retired 3B of those shares some time ago. For a long time now otcmarket.com has listed 2.308 Billion as the O/S. Insiders have 1.75B, as reported in recent(Nov?) PR. Float as reported in PR's until ca last June was 299 million. Some shares were probably issued since then(in summer 2010)for incidentals but shares obviously didn't pay for millions of equipment financed by investors,as noted by the last PR.
We've been over this before on this board. No company posts that type of confidential info. What don't you get? CWRN created the sub to comply w Mexican law. The only reason the Mexican sub exists is because of Mexican law,which is why technically it is called an affiliate but in reality is a wholly owned sub w no shares of its own(meaning not a public company-was created by and for the parent CWRN).
The point of misdirection is to draw attention away from the soon coming shipping and substantial revenues and the new concession etc.
The people who do this are often buying cheap while they trash the company. People have even posted charts on this board showing how individual special interest group people promote to raise pps and then sell and then anti-promote to push price down so they can buy cheap again.
So the market essentially forgets about the soon coming shipping/substantial revenues and all the other good things in the 2-28 PR.
The proof/dd has been posted. Once the ore is past the customs at the port the only place it can go is the ship-which means revenue-and I would think there would be several shiploads at the port by Mar 17 so a ship could sail every 2 weeks,as pesquero noted weeks ago.
As I posted earlier,if this was another game by special interest groups, us dd longs unwittingly played into the game by posting the red flags about the buyout offer. It does not always occur to us how the market will twist this dd into something negative.
In the end,it does not matter to company operations whether the buyout is a legit offer.
What mattered to me was that the company could do much better on its own and achieve a much higher price on is its own in the coming months. And once a few ships have left port buyout offers could be much higher and even more months down the road.
But fear usually controls and distorts the message.
Absolutely-I agree w you. I was just saying that the company and potentially shareholders would have an additional cause of action for libel.
If this buyout offer was a game by special interest groups to take away attention from the following,it was a masterful plan on the order of the false accusations of a supposed promotion by the company that led to the undeserved ce. CWRN's fundamentals have not changed.
From the 2-28 PR:
"Due to the constant internet chatter, phone calls and electronic mails asking the Company about a large new iron mineral project, and if we have received an buyout offer; management has decided to disclose to the public that it has paid $30,000.00 in mineral taxes on the 21,000 hectare (52,500 acres) "Mina Nazarena" as part of its contribution in a Consortium Group that is planning to develop the large iron mineral deposit within year 2011. The CWRN Team will be responsible for development and operations of the project. The mineral concession is located in south central Baja California, approximately 80 kilometers from the Sea of Cortez and 50 kilometers from the Pacific Ocean. The highlight of the project is a 14 kilometer (8.75 miles) long magnetite strike. The Company will begin exploration within the next few weeks. The estimated size of the ore bodies has not been confirmed; however, it is believed to be one of largest in Baja California if not the largest. The Company is also reviewing its options on two other iron mineral concessions located outside of Baja, pending the investment strategy of its U.S. investors which have indicated to management, that they are willing to go the distance on larger iron mineral projects."
The definition of MISDIRECTION is to divert your attention from something the magician(special interest groups who profit from a fall in price)doesn't want you to focus on:
-the new concession/consortium w CWRN as operational company
-more potential concessions
-the fact that CWRN's financial backers are willing to invest in much larger projects/have deep pockets
-confirmed shipping/substantial revenues beginning Mar 17.
Even if the buyout is real,the misdirection worked today.
same difference
See my and itmd's and others previous replies on this question. The Mexican company is a private wholly (100% )owned sub of the parent CWRN,reinforced by the legal agreements tying the 2 companies together.
Mex law requires a Mexican operating company(thus the sub)run by a Mexican national(Bobs wife)w Bob VP of the sub and Sharon VP of the parent. The sub is private-has no shares so the ONLY place the revenue can go to is to the CWRN shareholders.
Special interest groups are always raising questions that lead to doubt and create fear so they can profit. What you are proposing is that Bob and Sharon run w first revenues so they can be wanted fugitives for the rest of their lives after it took their entire lives to find this successful formula. This will happen only if the sun begins revolving around the earth.
I understand what you are saying. But the Feb 28 PR says CWRN expects the ce to be resolved(removed)THIS month.
The only way to do that is to post current financials THIS month-which is a requirement for removal of ce -as noted by previous posts quoting otcmarkets.com.
Which is why weeks ago I and others speculated CWRN would have to post financials earlier than they originally intended to and may even want to change fiscal year to record first shipments revenues.
Otherwise they simply become current by posting financials through Dec 31 now and w 1st quarter financials due 45 days after end of first quarter-post 1st qtr by May 15-though they have said they will post first quarter by Apr 15-which would be really fast.
If they want to show revenue,they might be able to post 1st ship rev to book(especially if they were paid early as some say due to this bullish iron market).
Or wait for the first ship to be loaded(which is the latest they would be paid-CFR shipping -responsibility for the ore passes to buyer once ore is loaded onto the ship).
They would want to leave a 5 day leeway before the end of the month to give pinksheets plenty of time to remove ce after current financials are posted and/or forwarded.
I can't find Freedom anywhere other than their own 1 page website either. Perhaps Bob has temporary euphoria over somebody-whether legit or not-beginning to recognize some of the company's worth. And perhaps they are floating this to see what we think and to aid them in any dd,since we have a lot of dd on this board.
As I've noted,and I would agree w itmd and jackg etc,even if freedom is legit,I think it would be a mistake to accept the offer when a much better pps is expected later this year without a buyout of .18. And after a few ships leave port and the ce is resolved they would probably receive higher offers.