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Sam, here is a copy of the Vancouver article.
David Baines, Vancouver SunPublished: Saturday, August 27, 2011
Unscrupulous stock tout services have been pumping U.S. junior exploration companies by suggesting that Vancouver-based senior gold producer Goldcorp Inc. is about to buy them out at huge premiums to their prevailing market prices.
The latest tout service to do this is Stock Castle, a wholly owned subsidiary of Fidelity Ltd., which is said to be located in the British Virgin Islands.
Stock Castle has issued an "Urgent Buy Alert" on Lone Star Gold Inc., a junior exploration company based in Albuquerque, N.M.
Stock Castle says Lone Star is "estimated to be sitting on gold and silver worth at least $18.14 BILLION!" which makes it "Goldcorp's NEXT takeover target!"
Lone Star shares are trading at just under a dollar on the dreadful OTC Bulletin Board in the United States, but Stock Castle claims that Goldcorp "could gobble it up for $179 or more per share!"
"Don't wait until Lone Star receives that near-certain takeover offer from giant Goldcorp!" it tells prospective investors.
Stock Castle's premise is that Goldcorp's El Sauzal mine in Mexico is running out of gold, and will be anxious to boost reserves by acquiring Lone Star's La Candalaria project, which is right next door.
Goldcorp, for its part, rejects any suggestion that it is about to make a bid for Lone Star.
"This is inconsistent with anything we have said to the market," David Deisley, Goldcorp's executive vicepresident of corporate affairs and general counsel, said in an interview Friday.
Deisley said he has asked Goldcorp's U.S. counsel to send a letter to the U.S. Securities and Exchange Commission disavowing any relationship with Lone Star and urging the agency to intervene.
"Promoters who do these sorts of things do a disservice in terms of manipulating the market and taking advantage of people. We hope the SEC will take appropriate action to protect the integrity of the market," he said.
So who is sponsoring this nonsense?
The disclaimer at the bottom of Stock Castle's alert states that it was paid $100,000 for distributing the alert, but it doesn't say who paid the money.
Lone Star's investor relations person, who declined to give his name, initially disavowed any knowledge of the Stock Castle alert.
He later admitted that several people had mentioned it to him, but he claimed he hadn't bothered to look at it.
"We wouldn't comment on any third-party commentary," he said.
Maybe he wouldn't, but if Lone Star was a B.C. reporting issuer, B.C. Securities Commission enforcement staff might very well require the company to disavow it, as they did with Vancouver-based Kunekt Corp. a few months ago when U.S. newsletter writer Eric Dickson made preposterous claims about that company.
Stock Castle's invocation of Goldcorp's name is not an isolated event. During the past two years, U.S newsletter writers Eric Dany, John Myers and James Rapholz - all well-known stock touts - have promoted American Sierra Gold Corp. or Gold American Mining Corp. on exactly the same premise.
Deisley said Goldcorp also sent a complaint to the SEC about those newsletters, and to the individual newsletter writers. But clearly, it has not had the desired effect.
Goldcorp throws cold water on stock touts
David Baines, Vancouver SunPublished: Saturday, August 27, 2011
It is interesting to note that Lone Star and American Sierra were spawned in Canada, and had close connections to B.C.
Lone Star was originally a Calgary-based company called Keyser Resources Inc. It went public on the basis of a B.C. mineral property that was quickly abandoned. It was clearly being packaged as a vehicle for some future promotion.
In March this year, the company was sold to 29-year-old Daniel Ferris, who was a partner in Magnum Communications, a London-based public relations and event management company that went into voluntary receivership in 2009.
These are, in fact, marginal grades and may not be economically viable, but if you ignore all that, and look only at the gross value of the gold, it adds up to the $18-billion figure that Stock Castle was hyping. This is the geological equivalent of fun with numbers, which would never be permitted under Canadian mineral disclosure rules.Under Ferris's direction, Lone Star acquired an option in the La Candalaria property. Ferris claimed that, according to a 2009 preliminary report (based on surface samples only), the property contained "potential reserves" of 10.3 million ounces of gold at an average grade of .20 grams per ton, and 216 million ounces of silver at an average grade of 40 grams per ton.
American Sierra also had a strong B.C. connection. It was spawned as C.E. Entertainment Inc., a company that would purportedly sell Ukrainian classical and folk music over the Internet.
It was ostensibly based in Seattle, but its president was George Daschko of Delta. This is the one and only public company he has been involved in.
When I questioned Daschko on Friday, he admitted he was president in name only. He said the person pulling the strings was Vancouver promoter Talal Yassin. He said Yassin lined up all the component parts, including the seed shareholders.
It's clear that this company was also being packaged as a shell company for some future promotion. Sure enough, within months, it was sold to another group of promoters, who changed the name to American Sierra and acquired the Mexican property that, according to the newsletter hucksters, would soon be gobbled up by Goldcorp.
Alas, Goldcorp never acquired American Sierra or, for that matter, Gold American. The former peaked at $1.42 in the fall of 2009, but has since slumped to three cents. The latter peaked at $1 last fall and is now languishing at five cents.
Lone Star is bound to follow the same pattern. It peaked at $1.15 earlier this week and dropped to 99 cents on Friday. In all likelihood, investors who take Stock Castle's prediction to heart will be left standing at the altar, waiting vainly for Goldcorp to walk down the aisle.
dbaines@vancouversun.com
What is funny is I see "MINERA SAN JORGE, S.A." and Bandera Gold on the filings but nowhere to be found is Southridge Minerals.
IG
Here we go again with the Naked shorts - every pump and dump board has the shorts posts - unbelievable! Here is the story behind this nonsense:
One tactic that many stock promoters use over and over again to explain why their stock promotions are followed by large stock price declines is to blame it on the short sellers. Unfortunately, FINRA abets these lies by publishing without adequate explanation data required by the SEC’s Regulation SHO. This data provides information on every share sold each day. Time and and time again I have seen stock promoters use this data to ‘show’ that the stock they are promoting is getting attacked by short sellers.
So the next time a stock promoter links to the FINRA Reg SHO short data to show that a stock dropped because of short sellers, you will know that they are lying. In fact, many times the large block sellers whose shares are sold in such a way to make them show up as ‘short sales’ in the FINRA data are the stock promoters or the people who pay for the stock promotion. So the promoters are not innocently wrong — they lie through their teeth even though they know better.
Actually, I called the Phoenix office of SCCO and that was her exact words, just like in the email - Baseless Rumor. Why don't you pick up the phone and call the Phoenix office? Then you to will hear the IR department use baseless and Southridge in the same sentence.
The phrase "baseless rumor" is often used in connection with a scam pump and dump.
IG
New Investors Beware! Ask About Guaranteed Goldcorp Buyout! It is very odd that as soon as the Goldcorp rumor was shot down and proven false - the SCCO rumor mysteriously appeared. (Kind of like today when it was proven that Cinco Minas is abandoned - we now have low flying planes surveying the site - just like clockwork LMAO).
But, back to the Goldcorp buyout - it was Stated that Goldcorp has already looked at SRGE and was going to buy - yes ALREADY LOOKED AT SRGE!!! They must not have liked what they saw!!!
MoMoRaptor
Friday, October 05, 2012 10:16:39 AM
Re: Lone Ranger 2 post# 34681
WRONG Lone Ranger 2! NOT only would GOLDCORP look at SRGE it already HAS and BUYOUT is very likely to happen!!!
MoMoRaptor
Monday, October 15, 2012 1:00:07 PM
Re: nodummy post# 39450
Wrong again Nodummy! Not only is BUYOUT a rumor it will be a reality sometime next week!!! you definitely should BUY some SRGE now!!!! Load up and get RICH!!!
He also stated the he guaranteed a Goldcorp buyout 3 weeks ago. He stated that Goldcorp had already looked at SRGE and the buyout was imminent.
Then suddenly the SCCO rumor appears. When the SCCO rumor dies another company will magically appear.
So his track record is poor at best.
IG
How and why would SCCO buy SRGE when Cinco Minas has been abandoned:
Will be an explosion of PPS when buyout news is definitive!
http://www.siam.economia.gob.mx/siamweb/security/cargaTarjeta
EG enter 221757.
Quote:
SUSPENSIÓN DEL USO, GOCE, EXPLOTACIÓN O APROVECHAMIENTO EN LA PRESENTE CONCESIÓN MINERA, MEDIANTE OFICIO SE/421.-6992 DE 16 DE AGOSTO DE 2012, DE LA DIRECCIÓN DE REVISIÓN DE OBLIGACIONES.
Translation:
SUSPENSION use, enjoyment, exploitation or use HEREIN mining concession
Through official SE/421.-6992 OF AUGUST 16, 2012 MANAGEMENT'S REVIEW
OBLIGATIONS
The concessions are under suspension.
Your obsession with BGL is very odd. They aren't the company doing a pump and dump and all of the paid promotions.
The reason SRGE talks about BGL so much is to divert attention away from the daily malfeasance of their Pump and Dump.
BGL put the videos out stating that Cinco Minas is abandoned and guess what that is true and has been verified. NEXT!
IG
Yes indeed, SRGE has proven alot - such as the ability to send out bogus press releases, do a paid promotion and don't forget the Photoshop work they do.
But, NOTHING they do has been or can be verified (by design).
IG
There is a preponderance of evidence that shows Cinco Minas is abandoned.
http://www.siam.economia.gob.mx/siamweb/security/cargaTarjeta
EG enter 221757.
SUSPENSIÓN DEL USO, GOCE, EXPLOTACIÓN O APROVECHAMIENTO EN LA PRESENTE CONCESIÓN MINERA, MEDIANTE OFICIO SE/421.-6992 DE 16 DE AGOSTO DE 2012, DE LA DIRECCIÓN DE REVISIÓN DE OBLIGACIONES.
Translation:
SUSPENSION use, enjoyment, exploitation or use HEREIN mining concession
Through official SE/421.-6992 OF AUGUST 16, 2012 MANAGEMENT'S REVIEW
OBLIGATIONS
The concessions are under suspension.
The SCCO investors should be asking the following about SRGE.
1. Why did SRGE gag the TA?
2. Why did SRGE go dark almost 2 years ago?
3. Why hasn't SRGE filed with the SEC since 2008?
4. Why hasn't SRGE filed any audited financials in years?
5. Who are the companies providing financing, Quixstone Investments, Inc. and Duvernoi Capital Investments Inc. and why do they just show up in SRGE press releases?
6. Why has the Mathers Research company only done one report and it is for SRGE and it says they have been in business since 2001?
That should be Enoch to get started - OK SRGE guys how about some answers.
IG
PS I didn't get into the fact SRGE has a Phantom CEO that is only found in a one sentence Linkedin profile page - come SRGE guys how about some answers - the SCCO investors want to know!!
Who has confirmed the aerial surveys?
If there is a confirmation then you should also know the name of the company that is doing the survey.
Why is everything about SRGE always non-verifiable information?
Please post the name of the company doing the survey.
It has been confirmed that these low flying aircrafts are indeed performing an airborne magnetic survey on the Cinco Minas and Gran Cabrera - SRGE properties!!!!
So SRGE without any revenue let alone profit pays out a grand total of $15,000 in dividends to entice more gullible investors to lose money.
SRGE paid WSIN $50,000 to do a promotion - $15,000 is a cheap for a promotion.
It is all style and no substance - just another way to hoodwink investors.
IG
How will SRGE spin SCCO buying a abandoned mine? Proof that Cinco Minas is not being mined!
http://www.siam.economia.gob.mx/siamweb/security/cargaTarjeta
EG enter 221757.
SUSPENSIÓN DEL USO, GOCE, EXPLOTACIÓN O APROVECHAMIENTO EN LA PRESENTE CONCESIÓN MINERA, MEDIANTE OFICIO SE/421.-6992 DE 16 DE AGOSTO DE 2012, DE LA DIRECCIÓN DE REVISIÓN DE OBLIGACIONES.
Translation:
SUSPENSION use, enjoyment, exploitation or use HEREIN mining concession
Through official SE/421.-6992 OF AUGUST 16, 2012 MANAGEMENT'S REVIEW
OBLIGATIONS
The concessions are under suspension.
They aren't running a Pump and Dump either - Press Releases everyday - Sierra blog posts, Wall Street Investor News paid campaign. Posts on this board about how you should sell everything you own and buy SRGE stock to become a millionaire next week.
Big difference in the volume when there is a paid promotion going on.
IG
First, the BGL videos showed that Cinco Minas were abandoned - proven true.
Secondly, your only evidence is from a SRGE press release, there are no audited financials. SRGE has filed a audited financial report in years. How have you personally verified SRGE is generating revenue except for selling shares.
SRGE is the company that went dark and has now gagged the TA - does that instill confidence?
IG
Does SCCO know they are buying a company that specializes in Press Releases and Photoshopping and NOT mining - LMAO!!!
How will the SRGE guys spin the fact that siam.economia.gob.mx states Cinco Minas is abandoned?
I know another barrage of posts and press releases - oh, I forgot Sierra will chime in also.
IG
Is that what Sierra or a SRGE press release stated???
SRGE REVENUE BABY! Flowing in like water! Mmmmm gold!
Oh No, another reference to the Sierra blog - what a trusted source of information. Sierra also predicted Microsoft was going to buy TAGG - LOLOL!!! Read the disclaimer!
DISCLAIMER
This blog is for fictional and entertainment purposes only!...All materials presented on this web site are not to be regarded as investment advice and are only offered for fictional and entertainment purposes. The accuracy, information or completeness of the picks posted on this blog is for fictional and entertainment purposes only!... Sierra, Adam and Johnny and all other characters ever mentioned and presented by the publisher in this blog are fictional characters and all posts in the blog should be construed as being for fictional and entertainment purposes only!
Most significant DD to date regarding the SRGE debacle. Excellent work to prove once and for all the huge effort to take advantage of unsuspecting investors that were promised to be millionaires.
Excellent work EarnestDD and Lone Ranger 2!!!
http://www.siam.economia.gob.mx/siamweb/security/cargaTarjeta
EG enter 221757.
Quote:
SUSPENSIÓN DEL USO, GOCE, EXPLOTACIÓN O APROVECHAMIENTO EN LA PRESENTE CONCESIÓN MINERA, MEDIANTE OFICIO SE/421.-6992 DE 16 DE AGOSTO DE 2012, DE LA DIRECCIÓN DE REVISIÓN DE OBLIGACIONES.
Translation:
SUSPENSION use, enjoyment, exploitation or use HEREIN mining concession
Through official SE/421.-6992 OF AUGUST 16, 2012 MANAGEMENT'S REVIEW
OBLIGATIONS
The concessions are under suspension.
Holy Cow, a virtual office doesn't mean there is no physical location!!!! It is basically a mail-drop.
Everything about SRGE is ALWAYS shrouded in mystery - there is nothing that can be verified from the Phantom CEO, to the fake financing companies - truly amazing the amount of deception going on to fleece investors,
IG
Actually, no one knows exactly how many shares SRGE has in the float because the TA has been gagged!
A "Gagged" transfer agent is one which has been instructed by the company they are working for to not release information, such as the share structure. This is NOT a good situation. There is no legitimate reason for a company to gag their TA. It is almost always done to hide dilution.
WOW - SRGE setup a auto-responder - how personal.
IG
There are many assumptions - one you are going off information provided by a company press release that has a shady past. So the quality of information is dubious at best.
You are also assuming you can recover 100% of the gold during processing - that isn't accurate. Goldcorp recovers at best 70% in all of it's Mexican operations.
Also, in a gold mining operation silver is considered a by-product and the recovery process is extremely low.
So, 90,000 grams = 3174 ounces of gold (100% recovery)
If you use 75% it goes to 2380 oz.
If there is a JV you have 1,190 oz of gold which would yield approximately $2,023,425 million REVENUE that doesn't take production costs into account etc.
A couple of things that need to be verified are for a open pit or surface mine 5.0 grams/ton is extremely high grade and much higher than I have seen for any open pit mines in Mexico.
The second thing I would immediately do is check and see if "Rising Star Mining" is a real company and if they are pick up the phone and verify they have entered into a JV with ABOT.
I would verify everything that ABOT issues in a press release.
IG
As usual rangerxlt, you are completely wrong! There is both written and verbal communications from SCCO that states ALL rumors associated about a SRGE buyout are baseless. Spreading baseless, false and misleading rumors to promote a stock is illegal.
The only people that believe the rumor are the newbie and gullible investors. And the SRGE board is full of innocent victims that are going to lose a great deal of money.
The rumor is being spread by those that have a vested interest in promoting the stock. The rumor was started by the FICTIONAL Sierra blog and has not been verified by any legitimate source.
IG
Before the end of the year??? Now that is pretty funny and shows a complete lack of understanding M&A. I guess you didn't read just 3 weeks ago it was guaranteed that not only had Goldcorp looked at SRGE but was buying them - LMAO!!
First, SRGE has been dark since 2008 and has not filed anything audited in many years.
All SCCO knows about SRGE is what has been issued in press releases and the Sierra blog. Yeah, very likely to happen before the end of the year.
The SCCO rumors just started soon after the Goldcorp rumors were shot down. So, a acquisition by a public company is going to happen in 2 months with Thanksgiving and Christmas - sounds good in a SRGE press release. You know in the world of make believe anything can happen. LOLOL!!!
You guys will believe anything!
IG
Only on the SRGE board can you find people still quoting and believing Sierra -
Sierra Told You First_Southridge Enterprises (SRGE)_Look For Official PR Coming Friday or Monday_PPS To Move UP
You can't depreciate a acquisition - you treat it as a whole if it is a capital expense. Your premise that a acquisition is a capital expense is completely wrong.
Your argument would be similar to purchasing a front end loader and breaking out the parts and depreciating the tires, engine, etc separately. Your argument just doesn't make sense when following GAAP.
It is pretty basic accounting. Plus, the rules of filing a 8-K require you to report a M&A separately from a capital expense.
SCCO did not file anything about a acquisition - they will have to file another 8-K if the discussions ever take place. When a Form 8-K is required for asset movement: acquisition or sale.
It is pretty clear that what SCCO filed didn't address any buyouts.
IG
I am curious as to how you know,
considering the lack of "supply" for SRGE shares
The Wikipedia entry does not follow GAAP. It is a mistake to believe everything in Wikipedia. How do you depreciate a acquisition?
Capital expenditure, is the amount a company spends on buying fixed assets, other than as part of acquisitions.
A capital expenditure is for fixed assets and it is not Generally Accepted Accounting Principle to treat them the same as a acquisition.
In the business world no one capitalizes a acquisition - it just doesn't make sense.
From US Gov website:
7. What are capital expenditures?
Capital expenditures include all expenditures during the year for both new and used structures (excluding land) and equipment chargeable to asset accounts for which depreciation amortization accounts are ordinarily maintained.
The new rules relating to Form 8-K disclosures (the “New Rules”) became effective, shortening the time period for required disclosures and requiring disclosure of certain transactions...The New Rules have a number of significant impacts on the reportability and disclosure of mergers and acquisitions transactions.....
Again a capital expenditure is for fixed assets that are depreciated not for Mergers and Acquisitions.
Huge difference and SCCO would have to address a acquisition differently in the 8-K
IG
First you need to know the difference between a fixed asset and a acquisition, obviously it is tough to comprehend. But this is funny, you think a fixed asset is the same as a acquisition. Capital expenditures are depreciated!!!
In terms of accounting, an expense is considered to be a capital expenditure when the asset is a newly purchased capital asset or an investment that improves the useful life of an existing capital asset. If an expense is a capital expenditure, it needs to be capitalized; this requires the company to spread the cost of the expenditure over the useful life of the asset.
Capital Expenses or Expenditures are payments by a business for fixed assets, like buildings and equipment....For tax purposes, capital expenditures are depreciated, under Section 179 of the IRS code
What???
DDK89429, SRGE is Mexican based
How do you know the float is locked?
Float is locked. Very deceiving to say it is not!!
A "Gagged" transfer agent is one which has been instructed by the company they are working for to not release information, such as the share structure. This is NOT a good situation. There is no legitimate reason for a company to gag their TA. It is almost always done to hide dilution.
I will bet a months moratorium on posting - if SRGE opens at a dollar ($1.00) I will not post for a month - if less than $1.00 you will not post for a month.
I will make it 6 months to your one month AND MAKE IT ($0.50)!!!!!
IG
If you want to believe that more power to you but that is not within GAAP or SEC filings.
IG
So I guess you have some photos like you did from the investors tour but forgot to take any of the Phantom CEO. I guess the meeting was video documented like the HUGE groundbreaking ceremony....you SRGE guys are killing me LOLOL!!!
SRGE issues a press release 2 times a week about all the great things happening but they forgot to take photos or video of the construction of the new Mill financed by the fake fiance companies.
Wrong I-Glow! Rocha disagrees!!! lunch with Senator was a success!!!
Acquiring a business is not a capital expenditure it is a acquisition and they are two totally different things. Plus, not only in GAAP but in filing a 8-K they are dealt with differently.
Capital expenditure (capex), is the amount a company spends on buying fixed assets, other than as part of acquisitions.
A capital expenditure either adds a fixed asset unit or increases the value of an existing fixed asset. An example is a new motor for a truck.
Capital expenditure are funds used to acquire or upgrade physical assets such as property, plants and equipment (business combinations and asset deals excluded).
Grego no matter how you cut it CAPEX and acquisitions are different and in 8-K filings they are entered separately.
I think it was more wishful thinking by SRGE investors and trying to validate Sierra's prediction and SRGE's press releases.
If you want to believe they are the same that's cool - but there is not going to be a buyout.
IG
Because the TAGG did a paid promotion by APS. Check GWBU, PRTN and AMWI to name a few.
GWBU went to close to $2 and AMWI went to $1.70. So TAGG didn't do that well compared to some APS past plays.
Sorry to say TAGG is gone and won't recover.
You need to read about APS (Awesome Penny Stocks) and learn how to play them - take profits and never believe anything they write - it is a paid promotion - it is meant to enrich APS and the company insiders. They feed off of the investors by telling them the stock is going to some ridiculous number and then they start selling.
Many people posting on the iHub boards have a agenda and/or they are paid promoters.
Head over to the DD board Fraud Research board and read up and ask questions. Check out nodummy and a few others they are really good at finding the next APS play.
Just remember most of the penny stock newsletters are paid to promote a stock.
IG
WRONG Again dolmo!!! My guess is that there wasn't a thorough reading of the definition of Capital Expenditure. You stated:
Why don't you go look up the definition of "capital expenditure." No matter where you look, the term "acquire assets" is featured prominently.
CAPEX are used by a company to acquire or upgrade physical assets such as equipment, property, or industrial buildings
No matter where you look, the term "acquire assets" is featured prominently.