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.
CWRN's detractor is purposely using a 5 year time line because price jumped 5 years ago.
According to www.indexmundi.com,iron prices 6 years ago were $37.90/ton. At a present $163.70/ton thats a 432% increase in last 6 years.
From 1995-2003 prices ranged from $28 to $32/ton--up over 500% in last 7 years.
If people were making a profit at $32/ton in 2003,it should be obvious there is a very healthy profit margin now,as both itmd and pesquero have recently calculated.
Due to the great recession costs have not increased comparably-I'm sure people are just happy to have a job w real unemployment in U.S. ca 20% and ca 40% in Mexico.
Shipping companies margins have suffered also due to recession-e.g shipping company PRGN(hope I've remembered the symbol correctly) w Handy and Panamax has gone down last couple years despite very good(stock advisors say excellent) fundamentals.
Its hard to believe shipping costs alone are now greater/ton than the price of ore in 2003,as some would claim.
Thanks. If I understand correctly ,CWRN was unexpectedly able to grandfather in on the old cement companies permit on Baja 14-something I guess CWRN did not expect when the website(ca 2008)said permit for Baja 14 was expected to cost $60k. Unusual for a government to be generous instead of double dipping and instead of increasing the permit fee.
There are new areas both North(not used by cement co) and South of the river. Are these both magma uplifts? Reference was made earlier to apparently a new area north of the river on Baja 14 that,unlike the loose floats currently being worked on,would have to be blasted-is this a magma uplift?
At any rate its good to know they have enough ore to keep them busy for a couple years before getting into the new areas and presumably blasting.
The permit for the Baja #14 site was expected to cost $60k as of 2008 as per CWRN website.
Once they obtained financing this spring,they decided to permit additional areas-as per June 7 PR:
"Working on land usage permits for all 4 ore bodies,which includes "2 iron ore bodies on the south side(across the river)of the concession will also be permitted... and the land usage for Baja #4..."
Aug 6 PR "it is expected all mining permits will be issued within the next 2 weeks".
Don't know how Mexico determines the price for these permits,but once the land usage is decided(which was done years earlier when the mining concessions were issued),in a society that recognizes private property rights,the issuing of permits subsequent to the earlier land usage determination is just a matter of red tape and bonding. I was President(10 years)and chief negotiator/land use planning(17 yrs)for a land management/acquisition organization in the U.S..
Permit fee could be based on hectares involved or estimated reserves,if known.
Baja 14 reserves were estimated at up to 20 million dmt;the new ore body S of river I believe est 1 million dmt,Baja 4 I don't remember but may state on website.
Throw in the usual price hike surprises and I estimated permits cost up to 200k or more,but could've been less if there was a discount for permitting all 4 ore bodies under the same permit process.
This doesn't count whatever costs were incurred years earlier when the govt made the land usage decision that resulted in the issuing of the mining concessions. That's when the real battle for and determination of land usage is fought,which involves various govt dept/planning agencies approval and often public hearings.
In case you aren't aware note that the size vessel(the handy class)CWRN will use til the dredging is complete(reported to be in Dec but could be early Jan)have their own loading systems-multiple cranes and I believe conveyor options-multiple reasons CWRN will use them til the bulk mineral terminal is dredged /upgraded w conveyors....
The port apparently presently has a 40 foot depth and is being dredged to 15 meters(49.5') according to previous reports.
From Wikipedia
Although there is no official definition in terms of exact tonnages, Handysize most usually refers to a dry bulk vessel (or, less commonly, to a product tanker) with deadweight of about 15,000–35,000 tons. Above this size are Handymax bulkers (typically 35,000 - 58,000 tons deadweight); there is no well-defined or widely accepted size sector below 15,000 tons.
Handysize is also sometimes used to refer to the span of up to 60,000 tons, with Handymax being a subclassification, rather than a larger category.[1]
Handysize is numerically the most common size of bulk carrier, with nearly 2000 units in service totalling about 43 million tons. Handysize ships are very flexible because their size allows them to enter smaller ports, and in most cases they are 'geared' - i.e. fitted with cranes - which means that they can load and discharge cargoes at ports which lack cranes or other cargo handling systems. Compared to larger bulk carriers, handysizes carry a wider variety of cargo types. These include steel products, grain, metal ores, phosphate, cement, logs, woodchips and other types of so-called 'break bulk cargo'.
.... The most common industry-standard specification handysize bulker is now about 32,000 metric tons of deadweight on a summer draft of about 10 metres (33 ft), and features 5 cargo holds with hydraulically operated hatch covers, with four 30 metric ton cranes for cargo handling....
ITMD' IHUB box 11-29-10 picture posting shows one of the 0-3mm mag separators-previous pics showed 3 of 4 superfine mag sep's stored next to the fuel depot,apparently just received at that time.
Since the superfines go by container and don't use a bulk cargo carrier(strictly defined)and presumably don't have to use the bulk dock being upgraded,its possible and perhaps necessary(if bulk carrier doesn't handle a mix of bulk cargo and container cargo)for superfines to be shipped separately,but no specific mention of this yet in PR's.
Meanwhile,PR says trucking begins 2 days after 3-18mm mag sep is in operation,possibly indicating they will begin trucking both iron sizes at same time-but would they use a different type of trucking for the bagged superfines?
PR's don't yet indicate different ships for the bagged vs bulk cargo.
Either way, whatever problems they encounter(and problems are par for any startup)they are forming an advisory board which will include mining engineers etc,which will aid in solving any problems.
Guess have to research handy cargo vessel to determine the configuration options.
Btw,and maybe I've forgotten why this is being ignored,the web site showed a large lay down yard for bulk materials(which until now have apparently been agricultural).
The videos by the port authority recently posted on this board indicate a new bulk loading area midterm 4 mi north of present port.
The rest of the Nov PR discusses as follows:
"The 3 by 18mm Fines will be shipped via Bulk Cargo Vessels and the 0 by 3mm Super Fines will be packed in Maxi Bags for container shipments of 8 bags maximum of 25 metric tons per 20-ft container, for Environmental Air Quality concerns and will begin before the end of November 2010. All "Guadalupe" Fines and Super Fines shall be sold on the China Seaborne Trade Spot Sales Market for the near future....
Other News: The Ensenada Port Authority is in the process of dredging its bulk cargo dock to receive PanaMax vessels up to 75,000 Down Weight Tons (DWT). The P.A. advised CWRN and PanAm both on Monday that the dredging project would be completed before the end of December 2010. The company will still make its first shipment via Handy cargo vessel at 30/35,000 DWT; However, beginning in January 2011 all bulk cargo shipments will be made via PanaMax at one or two shipments per month.
CWRN management has undertaken the selection process of a special "Advisory Board" that will be made up of Geo Science academia, Geologist, Mining Engineers, Geophysicist, Mining Law Attorneys, Environmental Specialist and other professionals within the Mexico Mining Sector. It is anticipated that the "Advisory Board" will be in place before the end of January 2011."
I agree. This is war-make them pay for once. Besides the best way to profit is to find an undiscovered stock w undiscovered fundamentals like CWRN and hold on.
I've been holding CWRN since Aug 2009 and very seldom have luck at flipping anyway, as the short term is at least 90% emotion and you can't predict other peoples irrational emotions. I'd rather concentrate on dd/fundamentals.
prophetically, "tenacious climber"
Very astute. We have an unusual # of smart dd guys,which must mean CWRN is a smart stock for smart people. Thanks Pesquero,itmd,bullitt,killswitch,temeku,jackd(not an exhaustive list).
With an undervalued stock like this using a stop loss may result in a forced sale at lowest price and have to buy back at higher price,especially when this unprecedented continuing short %/manipulation by ETMM stops.
Whether the short figures are real or not(all brokers/promoters I've talked to think they are but they could be wrong),I've never seen such high % without short squeeze-e.g LYJN jumped from 1/2 cent to over 20 cents on lesser %.
Most brokers know very little about pennies so disseminate much false info re stop loss availability etc. E said nobody allows penny stops,TD said they don't (yet Temeku uses at TD);the only penny friendly brokerage that openly allows penny stop loss is choicetrade.
Your info is one reason stop loss should be set 30% below price(the usual recommend),if at all on such an undervalued stock.
Wikipedia(mining dump trucks)says in the US standard weight limit throughout country is 40 tons w up to 52.5 tons by special permit and triple trailers where allowed can haul up to 129000 kg(129 metric tons)and will average 3-5 trips/day.(seems high but believe it said 129k kg,not pounds).
If they profit on gravel at $15/ton,imagine the profits on recent iron spots of $150-165/ton.
Part of the torture of their PERMANENT DETENTION will be remembering exactly when they received their final time of visitation and rejected it.
The false contention that the trucks will have to rumble through residential Ensenada streets has been answered before.
Temeku999's pictures show the 9km(5.5 miles)secondary Highway bordering CWRN's property/gate to connect to Baja's main superhighway-Hwy one-the Baja INTERSTATE.
Local authorities become familiar w traffic and typically have an understanding w trucking etc firms and would only spot check the trucks CWRN uses.
I have personal experience w the same in the United States-where certain agencies/groups are given permission to violate the normal traffic standards-without an official hearing and no bribery involved- its just recognized as a business necessity.
Hwy one goes straight into Ensenada with ONLY ONE TURN to the port-and I think that turn is simply an OFF RAMP onto the major secondary Hwy in Ensenada that proceeds DIRECTLY in a straight line the SHORT distance to the port from Hwy one-NO RESIDENTIAL STREETS involved and only a short straight distance on this major secondary Hwy to port.
Just google Ensenada and you can see for yourselves.
Re the lay down yard,until the dredging is finished(in December? or early Jan) to allow 75000 ton ships and the mineral terminal is optimized,they will be using 10000 ton barges to transfer to the 35000 ton ship,as you yourself have pointed out- apparently in lieu of a lay down yard.
This is an inefficiency but it is not controlling/substantial.
When I researched deep water ports,the 2nd busiest port in the world(I believe it was-certainly in the top 10 busiest)does this for most of their shipping because their port is much shallower than Ensenadas port-only 7 meters deep. That second busiest world port is planning to move to offshore islands and dredge to the same depth Ensenada is dredging to).
Then why,on behalf of your clients,did you ask itmd a few days ago when the first shipment would be(you were being serious and not sarcastic-clients needing to know),if you really thought this was bogus.
RE somebodies else's true contention that history is important,that is true if its relevant.
But history like beauty is in the eye of the beholder.
Read history by opposing points of view,e.g British vs Irish,Protestant vs Catholic(re middle ages),Russia vs U.S. and you would not only not recognize the same event, it would seem like 2 different universes.
That's why it is so important to know the applicable detailed background of the historian(who will put his resume/interests/associations/culture/background etc on file to be judged),who,like judges ,has to recuse/remove himself from anything in which he has a bias or personal involvement.
Until the historian does this and is shown to have no cultural/personal bias/involvement,he is not entitled to a reading/to be heard.
There we go again-dealing w past ventures for which no relevant connection to the current operation has been shown.
Since you are the expert on all things past why don't you tell us about the Cement Co?
Co's change operations for many reasons.
E.g, the Cement Co. was not shipping and prices were low at that time. As I've reported price was only ca $27 from 2000-2003 when the Cement Co was in operation-if not earlier.
Spot is now near $150/ton(has been up to ca $165). That in itself COMPLETELY CHANGES the picture.
$150 is 5555% higher than $27-that alone should be enough said.
As Ensenada is the only population center of any size in the area how far did the Cement Co have to truck-100's miles?
In addition to the drilling there were other indications of sizable deposits:
1).Deep trenching by the cement co as previously reported
2).The varied topography/slopes of the mountain ridge exposes iron at many elevations without the need for the extensive drilling that might be necessary on a flat plateau.
If exposed iron is seen at many elevations on the slope that's a strong indication of a large ore body. The red color all over the hills is not graffiti paint.
Besides,essentially the entire mountain range near CWRN's concessions is in mineral concessions-most of it iron as you know-CWRN Baja 14 etc is SURROUNDED by other mining concessions. Logic dictates this is not pure accident.
Website has detailed analysis for the iron indicating ca 63-64% iron which is considered high grade,as others have reported.
And high grade deposits are dwindling as rapidly growing industrial economies like China gobble up everything they can find worldwide. China is stockpiling many minerals(hopefully for peaceable reasons...).
Thanks for PM. Same thing happens to me.
RE some posts below: It is misdirection to keep bringing up past ventures many years ago when no relevant connection is shown between the two.
Somebody posted that a JV co Bob relied on in past did not have their claimed financing and so that deal fell through.
The financing for this venture is obvious in many current pictures of 17 plus pieces equipment and without loss of control(which often accompanies a JV).
It is also an old trick because honest people executing and posting dd are at a disadvantage re an operation which precedes us and CWRN.
Re: land ownership-this has been discussed before.
There are land surface rights and mineral rights.
Most non mining owners only own surface rights.
I would guess many if not most mining co's only own mineral rights.
Examples:Land surface owners discovered this in 1969 when coal co's executed a blitzkrieg buying mineral rights in the Dakotas and E. Montana etc.
Long Beach CA you see oil wells right in peoples tiny front residential yards-rundown homes because residential value is decreased by oil well in yard (and air so thick w oil you can hardly breath).
It is totally irrelevant whether a mining co owns surface rights. Ownership of mineral rights carries w it the necessary surface access to extract the minerals.
In picture #23 of the pictures i.t.m.d posted 11-29 Bob and Sharon were scouting other locations,so Bob may have been on such a trip.
Plus I imagine he is in their Ensenada HQ some days dealing w the port and shipping issues.
That he does not need to be on site everyday is a good sign that things are set up good enough on site that Matt etc can run the site.
Somebody (killswitch?)answered the question about shipping costs sometime ago.
CWRN has often emphasized it will be selling spot prices to retire debt earlier-I don't think that has changed(thats one reason why CWRN keeps spot price link posted) and spot prices have generally been higher than fixed prices(as you can gather from the article)-partly because price/ton has risen from $27 in 2003 to a spot price around $150 now(that's one reason margins are so high now).
Prices have risen dramatically partly because China had a monopoly in setting prices until its suppliers stood firm in the last couple years and broke Chinas ability to set the price by fiat.
Remember that many wars have been fought over natural resources,including Japans attack against the U.S. to secure natural resources it needed for its economy and was afraid Americas growing reach would put those resources out of Japans reach,plus the Gulf wars many say.
Economies that grow and make their money from processing of natural resources,especially China and Japan, will go to great lengths to secure those resources. Thats why China is doing public works projects pro bono all over Africa etc to get a leg up on Africas iron etc.
Due to this situation China will take advantage of seasonal slowdowns to stock what it needs -like a nervous miser afraid it will not have enough.
SEMPER FI,which somewhat ironically is also the motto for some of China's(and other nations)armed forces also.
I've been wondering that myself w brokers etc apparently violating rules to allow shorts to get as high as 88%. Very few of the 1000's of pennies break out of the blocks for good. Almost all that rise for a few days then fall.
However CWRN is the real thing-I don't think the shorts have done their homework to recognize that.
I'm guessing many flag any stock thats risen for 3 days or more or a certain percentage and automatically short- playing the statistics without actually doing their homework-because 85-90% of the time they would statistically be right.
Without doing their homework they may also think the rise is due to some newsletter promotion(w probably 100 newsletters you can't keep track of them all) and almost all stocks tank after such a promotion.
Again, without dd they don't recognize there is a true ongoing non-inflated unstoppable catalyst.
Thanks Doubloon and Cee-It and Trapper-just trying to keep things interesting(the board was sleeping for a while)and put some meat on and get a better feel for this beast while we wait a couple or few weeks for the IP and results.
I waited 45 minutes or more for the 13F4 map Doubloon referenced from the cite supplied by Cee-It here to load but is still loading and I'm not a techie.
Map loading...one moment please
They have an updated filing on otcmarkets.com(formerly pinksheets.com)as of Nov 25 ,so that indicates they are coming out of their silent period and,as you noted on yahoo,the STOP sign HAS BEEN REMOVED.
I'm surprised the stock hasn't jumped on such concrete independent evidence that this is starting to come back alive,especially when the stock has often doubled on unsubstantiated rumors.
Thats about what I would expect. I have a topographic USA computer program-unfortunately it does not give elevations for Canada. But the lay of the land and all the lakes would not indicate too much elevation difference. The Goose Bay weather station elevation is 161 feet.
No precipitation is forecast for Thursday to Saturday-they may have already done the first grid for all I know.
The Celsius temp's are Thursday 4C high; Fri 1-5 C; Sat 2-5 C
I think Doubloon estimated 2 weeks to conduct and analyze the IP once the line cutting was done.
BTW,every 1000 feet elevation is equivalent to going 600 miles north.
Yes and line work may have started a few days before the PR came out. Doubloon reported a few days ago the line cutting was already done.
How long does it take to do IP on first of the 3 grids?. PR said 3 grids-I assume they'll do the area of primary concern first.
If you go to www.wunderground weather site you can input the zipcode or "Goose Bay Newfoundland" and it gives the following forecast:highs/lows for Wed Dec 1: 35/32; Thursday 39/33; Friday 41/35; Sat 41/30-very nice weather assuming its dry-havent checked that yet.
Fortunately the entire province is surrounded on more than 3 sides by the moderating(at this time of year)influence of the ocean.
Does anybody know the zipcode or Canada's equivalent for the Wolv site? The weather may be slightly different on site because it is ca 75 miles inland from Goose Bay and temperature changes ca 1 degree F for every 182 feet elevation. Does anybody know Wolv sites elevation?
Thanks for the PM i.t.m.d.-when is happy hour?
There has been substantially more dd on CWRN than any of the 1000's penny stocks I've researched.
Every libelous post(often by people maneuvering because they know CWRN is the real thing)has been abundantly rebutted with dd.
If you're still nervous about this company you shouldn't be in the penny market.
Unlike CWRN, most junior miners are still 2 years or more from production ,if ever. Yet some command stock prices up to one dollar,despite no PR's for 10 months,only 1 director,very little activity and 50 BILLION shares!
Despite the present short-lived penny classification,CWRN has been more upfront than any of the 1000's pennies I've researched(except 1 unusual 100 million plus company w huge PR dept)and the only penny where CEO is reachable in my experience.
Because CWRN is such a rare gem in the making there are near record levels of manipulation.
E.g,I don't ever remember seeing shorting approach 90%. Usually sites devoted to shorting disclosure will issue a short squeeze alert if shorting is ca 30% or more-I don't know how the present shorters etc are getting away with it.
Check the math,as itmd has pointed out. As per PR there will soon be 105,000 tons/month times ca $150/ton spot price($15,750,000)times a conservative margin of 40%(see itmd's stickies etc)and the margin will improve as port etc efficiencies improve,for a net profit of 6.3 million/month(at 40%).
IN reply to posts and the contention that shorting does no harm,I have not been paid one cent to pump or promote any stock,do not work for the company etc.
Disgusted by dishonest stock promotions we were going to do an honest unpaid regular stock newsletter highlighting the most undervalued pennies but shorters manipulation of the penny market made that proposition non-doable as long as nellies were manipulated by fear tactics instead of being steered by the facts.
RE the continual attacks against the company for delays,
the shorting which helped precipitate the national/world financial crisis almost eliminated credit,which imo from what I know delayed CWRN'S project for a considerable time due to difficulty of ANYBODY obtaining financial backing(banks are still sitting on 1.8 trillion fed infusion w tripling of money supply,afraid to lend again).
Nobody we knew could find a blue chip rising once the depression hit so we got into pennies-CWRN was the most upfront and the most reachable,and considering the almost total elimination of credit for ANYBODY CWRN did a good job...and we perceived/still perceive Bob to be an honest man-personal knowledge of the same was important in this depression.
Major companies folded,Ford had a reported 132 B debt/neg 2.33 bv/sh,even Walmart lost 2 B in 1 quarter.
Regulatory agencies prohibited shorting in certain sectors for a time because they contributed to the sudden finacial collapse.
100's millions saw the loss of a great portion of their investments/lifetime earnings/expected retirement as is COMMON KNOWLEDGE plastered across the newspapers and in the SHOCK seen on peoples faces as they walk around in a stupor,asking what happened?
For newcomers ,killswitch pointed out in a post weeks ago that surebob was an ex-associate of Bob kicked out of the company for alleged violation of some agreement-something surebob has never even attempted to deny.
Like waiters or snowmen he suggested the pictures of production were fake. All you can do is rebut w the facts because you will never convince them. Said rebuttal of most of their points has already abundantly been made in past posts but some search for new victims unaware of past posted dd.
I don't know why libelous attacks are allowed to be made against directors and the company,esp without anything solid to back them up,especially repeatedly by same posters throughout the day-spam..
The standard for libel re a public official(and these people are only semi-public-they are only public in the sense that the corp is public-and pennies have much less public exposure)is reckless disregard for the truth-New York vs Sullivan. I covered this topic in a term paper and moot court in law school back in the day. Most posts attacking the company violate that standard,many obliterate it.
Thanks to all for excellent dd posts-we have quite a good dd team.
To my knowledge nobody has pointed out that the IP will be done in 3 separate grids,apparently in 3 separate areas.
Thus they could concentrate on the primary area to get it done first as insurance against the winter weather closing in before the primary area is tested.
From the PR:
"The IP survey will be conducted on three separate grids. The main grid includes known surface showings and some drillhole intersections of disseminated copper. The second grid will cover an airborne electromagnetic anomaly that has not yet been drill-tested. The third grid will cover a malachite showing that returned high copper values."
why it isn't .50/share yet
1)short term outlook by those who don't recognize how rare this incipient success story is in penny stocks-it is rare- that's why we have the abominable snowman's posts whom the phone among others has noted is a paid waiter.
2)war for the mind of nellies by waiters positioning themselves and their clients,which will continue as long as clients so order or they finish flipping. Their game will hopefully be up when shipping begins and revenues start rolling,or when a larger investment pool not affected by these games materializes.
3)usual mm/short etc games which occur when you have a success story in the making
4)the above are compounded on slow trading days.
The entire Thanksgiving holiday week(here in the U.S) is slow trading,especially in penny stocks where people are withdrawing funds for holiday travel and the big Christmas shopping event known as Black Friday- which has already started this year due to internet store sales. This week was slow last year due to the holiday and Black Friday also.
Trading closed Thursday in U.S. and closes 3 hours early on Black Friday
mag separators are on site for the 0-3mm superfines
mag separator arriving this month for the larger iron-can handle 1000 tons/hour so full shipload in as little as 35 hours
Trucking to start 2 days after the latter separator is operational
SEMPER FI
And in the old days and even today the first farmers to get cotton or corn to market got the best prices.
I didn't know but now guess that the other mining concessions in North Baja have not gone into production yet,or,as you indicate,the port would already have mining specific conveyors and a loading berth for minerals.
I wonder if that is why the large private iron mining co Navria(spelling?)on its website had lavish plans to construct their own N. Baja port-(and even talked about a new 4 lane coastal hwy S. of Ensenada)but I haven't heard anything about a followup or execution of those plans. Navria's N Baja mining concessions are extensive and surround CWRN' concessions on more than one side.
Notice that they already have magnetic sep for the superfines
"Magnetic separators for the 0-3mm superfines are on location and the installation of these units will begin within the next week."
The superfines are bagged for environmental pollution reasons and may possibly not need a port conveyor system and could either be shipped separately or on same ship.
The port has shipped millions of tons of agricultural projects apparently w conveyors but as previously noted by the co or co spokespersons apparently hasn't had conveyors for minerals,which seems odd,as it is the only deep water port in Baja and practically the entire backbone of North Baja is covered by mineral concessions.
I.t.m.d.apparently is occupied elsewhere today,so the sentence you note in red is difficult sentence construction,but if coordinated with part 2 ,the share buyback,as the company buys back shares in the float,they can also retire a similar percentage of CWRN shares (held by insiders)without fear of losing control of the company. I think thats why they mention the company through its directors now own over 60% of stock.
If they retire 60% of the float,they can retire a number of their own shares while maintainng voting control-as any company would want to do.
I understand what you are saying re a form of R/S,but if you take into consideration my earlier post about real companies being undervalued in penny land sometimes by a factor of 1000 times or more,the total stock value of the new major index shares we would receive could be worth more than the undervalued penny shares.
I'm still processing the eventual IPO info in the midst of my other work,which at first seems unusual since they are already a public corp. Possible reasons for their use of IPO would be:
1)to pay back their investor-possibly more quickly than otherwise-I don't know what arrangement CWRN has to pay back investor
Retiring company shares as well as buyback would use funds that otherwise may be used to pay back investor
2)Due to severe bashing which controls the penny market,the share price of good companies severely bashed does not reflect the fundamentals-shares of real companies are greatly undervalued while the average penny co trades at 10 to 50(sometimes 100's)times book value.
Disgusted by dishonest stock promotions my friend and I were going to do a regular newsletter on undervalued penny stocks,beginning w a company w 100m revenue and 2.2m net,but bashers knocked stock from one dollar down to .0004,w market cap under 10k !!!! The co could buyback entire float w pocket change.
So CWRN may want IPO as more sure quicker way to escape the many games played in penny land so share price more closely tracks the expected fundamentals,seeing the role bashing has already played re stock price. Still processing...
For general info,including reasons for IPO, see wikipedia.org.
If they want to list on NASDAQ, the IPO would have to meet minimum requirements for NASDAQ.
An IPO is more about the reasons for an IPO than the minimum requirements-usually private to public corp status to take advantage of advantages inherent to public corp's-- the chief of which is probably to raise large amounts of capital for expansion without having to deal w repeated private placement negotiations or debt. IPO helps raise large amount of capital for the company because price of shares so issued goes directly to the company for expansion.
The Nasdaq has three sets of listing requirements. Each company must meet at least one of the three requirement sets, as well as the main rules for all companies.
Listing Requirements for All Companies
Each company must have a minimum of 1,250,000 publicly-traded shares upon listing, excluding those held by officers, directors or any beneficial owners of more then 10% of the company. In addition, the minimum bid price at time of listing must be greater than five dollars, and there must be at least three market makers for the stock. Each listing firm is also required to follow Nasdaq corporate governance rules 4350, 4351 and 4360. Companies must also have at least 450 round lot (100 shares) shareholders, 2,200 total shareholders, or 550 total shareholders with 1.1 million average trading volume over the past 12 months.
In addition to these requirements, companies must meet all of the criteria under at least one of the following standards.
Listing Standard No. 1
The company must have aggregate pre-tax earnings in the prior three years of at least $11 million, in the prior two years at least $2.2 million, and no one year in the prior three years can have a net loss.
Listing Standard No. 2
The company must have a minimum aggregate cash flow of at least $27.5 million for the past three fiscal years, with no negative cash flow in any of those three years. In addition, its average market capitalization over the prior 12 months must be at least $550 million, and revenues in the previous fiscal year must be $110 million, minimum.
Listing Standard No. 3
Companies can be removed from the cash flow requirement of Standard No. 2 if the average market capitalization over the past 12 months is at least $850 million, and revenues over the prior fiscal year are at least $90 million.
A company has three ways to get listed on the Nasdaq, depending on the underlying fundamentals of the company. If a company does not meet certain criteria, such as the operating income minimum, it has to make it up with larger minimum amounts in another area like revenue. This helps to improve the quality of companies listed on the exchange.
It doesn't end there. After a company gets listed on the market, it must maintain certain standards to continue trading. Failure to meet the specifications set out by the stock exchange will result in its delisting. Falling below the minimum required share price, or capitalization etc would result in delisting after deficiency is noted/given.
There are 7 classifications of OTC(over the counter)stocks
1)skull and bones-various reasons-many of stocks promoted by penny newsletters are skull and bones
2)grey market- a mining co reworking old Montana gold mine went straight from grey market to otcqx recently-unusual-.60/SH
3)no information(no posted financials)CWRN's current status
4)limited info-some financial info but not complete or current-was CWRN'S status through 9-30-09-but dropped due to extra legal and accounting fees etc
5)current info-this will be CWRN'S status come April w audited financials,if not higher,because audited fin's very rare at this class
6)otcqb(formerly full quote)sounds like could be CWRN'S status/intent
7)otcqx-most transparent-disclosure approaching that of major exchanges-variable 25-150 companies -often foreign-who don't want hassle of major exchange requirements or can't meet one of the many requirements
Entire OTC is changing rapidly w emphasis on increasing professionalism and transparency.
Generically(the sense I believe CWRN is using)PINKSHEETS and OTC and OTCBB refer to all 7 classes,w recent nomenclature change from pinkshheets to OTCBB,w specifically otcqb and otcqx called otcbb classes while the lower 5 classes are now specifically called pinksheets(formerly all 7 called pinksheets specifically).
Generically pinksheets includes stocks up to one hundred plus dollars/share,though most pennies are under $5,and companies w at least 150 million remain on otcbb for various reasons(e.g low share price due to bashing that doesn't reflect company fundamentals).
Min share price of one dollar plus many other financial fundamentals are required for major exchange listing.
A reverse split at this point would be completely illogical and like dilution is a mantra designed to scare nellies into releasing shares cheap.
I regularly read about penny companies doing a forward split to make the stock more palatable(cheaper) to a wider pool of penny investors,and institutional investors get involved in pennies under ten cents also(e.g SJLS re WOLV).
The revenue will increase share price sufficient to attract bigger investors.
The highest OTCBB classification(w only variable 25-150 stocks)is OTCQX,the highest of 7 OTCBB classes, with transparency approaching that of the major exchanges and many large Corp's utilize OTCQX (using ADR'S)rather than major U.S exchange. Adidas last I looked was OTCQX.
Last I knew OTCQX dropped their minimum price from .25 to .10,so CWRN,by various peoples estimates,would be able to join OTCQX before long if it chooses. The blue ribbon advisory committee will probably help guide CWRN to higher classifications.
If you want a good laugh many brokers know nothing about OTCBB and don't realize the tremendous strides to transparency by OTCBB since 1999. One broker told me OTC stocks have no financial statements etc. I said of course they do-I've seen financials for 1000's of them. After I mentioned OTCQX several times (he still didn't understand)he looked it up and tried to convince me Otcqx was a mutual fund!! People set in their views apparently can't change.
IF you look at an iron ore spot price chart(e.g.mongabay.com) spot price was about $27 from 2000-2003, ca $74 by 2007 and now ca $135-145. This is one of the reasons there is such a high gross(I assume its gross not net-i.t.m.d detailed this in a post days back) margin(profit)of ca 50% as others have noted.
Because many of Chinas suppliers finally stood up to Chinas fiat fixed prices within the last few years,iron is now sold for a much higher price on a free market spot basis.
The millions of equipment(much of it apparently new) shown in numerous pictures (see i.t.m.d's posts) indicate CWRN has had a major financial backer and will not need to take out loans once shipment begins.
Why would they need to take out loans after shipments begin?
With perhaps 2.5 million profit/35000 ton shipment and 5 million/75000 ton shipment,CWRN will be able to payoff debt,not incur it.
The post that says CWRN will have to take out loans apparently does not understand that CWRN already has ca 90-100% of equipment as per the numerous pictures from various sources,with the last piece(mag separator) having a target date for arrival of Nov 15-20. Presumably the huge piles of ore are awaiting the last step of processing by mag separator and then trucked to port.
The high revenue and high margin is more important long term to stock price than buyback,though further news re buyback is the kind of thing that traders jump on.
2 people have asked about present short-from regsho.org,subsection ORF:
date11-17-10 sh short total vol
20101117|CWRN|26778170|104634459|O
I.e as of close yesterday 26.77 million shorted and vol of 104 million that day.
Whether certain groups help longs by lowering prices depends on when you got in at what price. I've held CWRN since August 2009 at prices generally higher than todays and while I've only been on this board since March,I was on other CWRN boards before then and my group in contact personally w Bob from 2009.
My remarks re shorting result from the tremendous destruction they have done to the market ever since the depression hit officially Dec 2007. They are destroying the penny market as nellies jump ship at their shouts of scam/dilution on EVERY stock just to find the same situation w EVERY stock/company like CWRN that dares to breakthrough like CWRN. The result-nellies increasingly leave the market,licking their wounds resulting in a cycle of market contraction,making it hard to profit on any stock.
It has been noted in official business/govt documents how shorts helped precipitate the crash which still affects us today and will for years,creating trillions of debt and loss of millions of jobs,almost eliminating credit making it harder for startups like CWRN and everybody else to obtain financing.
Shorters were becoming overnight millionaires helping precipitate the crisis.Thus the regulatory authorities prohibited shorting in certain financial sector stocks during the worst of the recession/depression.
They know the psychology of nellies and their lack of dd.
Once ca 5 MIILION of revenue/shipment starts pouring in w the 35000 ton shipments and ca 10 MILLION/shipment w the 75000 ton shipments expected in Jan, a larger investment pool not affected by the chatter will skyrocket the stock,with or without buyback.
Another jr mine stock a long way from production w no news for 9 months and 30 Billion shares was a low of .36 recently.
Has anybody noted that MXGD has updated their financials-meaning they are becoming current in their reporting-see otcmarket.com
That is logically a good sign of preparations for big things to come. And given the Williamson mine expansion the companies current finances don't have a lot of bearing,considering the buyout or JV possibilities. Thus,I thought price would appreciate-logically it should but if not promoted as much today (possibly over fear of being connected to fake PR?)thats where the herd goes. Given the possibilities the herd may be sorry.
Why is this dropping when Petra still has an 83 or 84 million line of credit to expand the Williamson mine and another mine.
As people have noted MXGD surrounds Williamson on 3 sides.
I assumed that's what the reincorporation in Wyoming was about and the reason for the new share structure,especially the preferred,which would enable MXGD to raise substantial money as part of a possible JV in expansion of the Williamson mine.
Besides didn't I read in their financials that they intended to use "non-dilutive" debt or private placement financing?
The fact that the lithium company PR was fake is irrelevant to the above situation. The lithium deal didn't make sense anyway and only came up overnight and therefore was not traded on,so that should not be impacting the trading.
otc site confirms ca 400 million float.
Bob and Sharon are in the pictures and companies name is on the large entrance gate as shown in the pictures. Thats better than a plastic logo somebody could slap on.
Remember pictures of current activity were first posted w i.t.m.d's help by pisquero(spelling)who lives not too far away from site.
There is abundant dd in the posts by Bullitt,itmd,killswitch,myself and many others-soory if I left your name out -just a barebones.
Where is the dd or substantiation by detractors???? This dynamic has always puzzled me.
That is a very good question,especially considering the shorts were in serious trouble and their representatives are having a field day today after being mostly sullen or silent the last few days,except the paid professional.
With ca 42 million shares still shorted the smart thing would've been to hold and let them pay the price for their destructive efforts for once.
A good example of how people believe the unsupported fear tactics rather than substantiated dd.
Go to regsho.org, subsection ORF-a cite I gave a couple times and you have independent verification of the ca 51.5 million shares shorted after close on Monday-look at the chart for last few days(penny charts do have severe limitations but a substantial rise over several days often triggers a short squeeze-but you rarely see a substantial rise foe several days because the tactics are ramped up to protect the shaters.
Look at the pictures of MORE equipment than the majors sometimes have as somebody who worked at major posted. Read the PR'S-they have been substantiated.
But they are almost always smarter in their tactics and convince nervous nellies of their misrepresentations w their culture of fear and shouts of scam and dilution(they shout this on EVERY stock they deal with-its there Ho Chi Minh mantra-a calculated game and they know nellies don't have the ability or gumption to do the necessary dd to overcome their lies,which is why my friend and I didn't do a stock newsletter after I wrote the first one.In these uncertain times we saw how people believed the fear tactics instead of the truth.
I thought we were finally beyond that stage on CWRN.
None of the other juniors I've followed over the years were as advanced as CWRN nor had pictures etc and their stock was usually much higher -up to a dollar plus.
Someone on this board has often bragged about his ability to manipulate and predict the price and bidwhack at end of day to fulfill his prediction and then he is congratulated!? Amazing!!!
I grew up in a cult and I know how the manipulation/brainwashing works and I would never be a part of it and have broken up cults when people called on me for help when they.thier family/group etc were under attack .
Several people have presented solid dd showing CWRN is the real thing. The company is not diluting,have said they are not and have no reason to do so at this stage w first shipment /revenue within maybe 2 weeks.
35000 tons times 140/ton would be 4.9 MILLION dollars PER SHIPMENT-that amount repeated 2 or more times/month(ca 105000 tons /month goal by Jan as i.t.m.d noted- as i.t.m.d has pointed out -do the math -we arent talking advanced calculus.
The company makes money buying back stock once they have such consistent revenue,so many companies buyback once they are in such a situation and if they want to advance to otcqx or a major board they have to meet minimium share price etc requirements.
The stock will recover but I wish peple would stop being motivated by fear-its the adversaries tool.
Just to add to what you said,not contradicting what you've said, I researched the ability to execute after hours penny trading etc many months ago- I've never done so-almost no broker allowed it for pennies.
When they did allow(I believe only one would even allow as per their written materials and I don't know whether it was practical as the broker didn't even know about it etc-I had to point out their written material),there was an ECN surcharge of one half cent/share in their written material-pages of print nobody else apparently reads.
I got a lot of disinformation-many brokers don't know anything about pinksheets/otc-which have dramatically changed and are still changing since 1999.
I was talking to one broker about the 7 pinksheet classes( otcbb had not been separated from pinksheets yet)which he knew nothing about and several times mentioned the otcqx as a pink classification requiring substantial transparency-because he was falsely telling me otc stocks didn't have any reporting etc. He still didn't understand and looked something up and tried to convince me otcqx was a mutual fund!!! So many brokers know very little about the pink/otcbb world.
So in that scenario it would make no sense to trade a stock at this price because the surcharge would equal the price/share and thus double the price/share.
You can trade CWRN with most brokers including Ameritrade, E trade(more expensive) and choicetrade($5/trade below 500k shares)-choice is the most friendly to pennys.
Re our poets musings on promotions,I agree w I.T.M.D.--CWRN is one of the most active stocks and for good reason so some of the myriad newsletters are picking up on it on their own because there aren't many penny stocks worth mentioning in their newsletters(most pennies financials are ridiculous except for the most heavily bashed),and penny stock newsletters have exponentially proliferated since March 2009.
CWRN does NOT need promotion by newsletters at this point because its in the process of acquiring the fundamentals necessary to attract a larger group of investors.
And with their newly appointed blue ribbon advisory committee they will probably be upgrading their transparency/pinksheet classification and then later proceed to enter otcbb classifications as otcqb,though they could go straight to otcqb if they want to meet that level of transparency sooner.
CWRN has no real reason at this stage to pay for a promotion and I've noticed a high percentage of companies have a lower stock price after the promotion is over than if there were no promotion,as the herd of turtles exits and panic selling follows.
So the tactics of a self proclaimed bidwhacker to bidwhack at end of day to discourage investors(which won't matter in the long run but concerns some in the short run)and to discourage newsletters from promoting on their own is a tactic w doubtful value on that front also.
BTW,the 51.5 M shorted was reduced to ca 42Million shorted as ca 9M covered today.
Re another(killswitch?) post:
I can't think of junior mining companies off hand that went to production instead of merely reworking old mines.
NONE of the junior mining co's I've followed that I can remember have actually reached this stage and they have all had significant delays or setbacks and take or will take years to reach production absent buyout or JV.
Look at the chart for last few days. They have 3 days to cover.
and shorts have increased in last 3 days from 12 to 55.5 Millon.
Some may have covered early today(the spike)though I don't see the telltale signs of that in the chart-though I'm sure there are people here better able to read that-probably i.tm.d.knows more about that.
I've noticed short squeezes normally begin when shorted shares are at least 30% of the days trading volume and short squeeze alert sites often alert possible short squeeze long before that -when I don't see a short squeeze in the figures.
Looked like somebody was purposefully pushing shares down at the end of the day(as somebody on this board has often ADMITTED doing) w my positive post just before that(which would've strengthened end of day price)immediately disappearing as part of....
SEMPER FI