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Rook SEC filings explanation. http://en.wikipedia.org/wiki/SEC_filings
Airdale
Grinnnn, I was just kidding about having a friend myself. Maybe we can be pals Chart.
Airdale
"Do anybody care to answer my buddy's questions"? My, this is some kinda post. Is there some reason anyone here owes you answers?
How do you know AURC has fully paid for the Klyon Gold deposit? Mr. Parkin has stated via email that they have a very small amount of debt. Hmmm, must be another answer to the puzzle.
2Create provided the information that it was cash and "considerations" used to acquire the rights to the property.Do you know what the considerations are?
Perhaps they are to be paid after the property is packaged and sold with all other properties to a "major".
What we know about Klyon from Viktor Feldbush is it was tough to beat out other firms to acquire. It has no current mining taking place and it has 1.9 million ounces of AU and is fairly concentrated.
According to Mr. Parkin, said Feldbush has held positions with major gold manufacturers and is well positioned in the Russian gold industry. Sometimes a reputation will get you quite a distance with people.
Bottom line, we don't know much about Klyon and are awaiting more information.
Hey, I have a buddy that tells me that RSM Top-Audit is a reputable firm and they are the auditors for AURC. He also said gold prices are on the rise and should be worth more in the future. Perhaps our buddies should get together.
Airdale
You really need a new moniker Rook. You're way past a newbies understanding on this securtity IMO.
I've purchased stocks based on what a management team had done in the past but never what they are doing in the present. Some of the existing price level and support at which we currently sit is probably attributable to NDOL and its progress. It is comforting in a way watching their story unfold and knowing our guys have a twin that needs the same treatments.
Mr. Parkin is behind on many "promises" to shareholders, but he is balancing his time between the two firms. We don't know what time requirements our twin demands and what's left for us. I would suspect if their offer of a buyout has merit, pricewise, he absolutely must dote on them until that job is complete. Meanwhile, we wait but the wait certainly looks worthwhile in my view. A move off the pinks means all financials would have to be in order and presented to the SEC. I think Top-Audit can handle that.
Airdale
Rook, this stock has all the makings of a world class soap opera. Emotions running rampant, whining, crying, claims of abuse, divorce threat potential, legal proceedings and half of the couple is stepping out. The name of this jewel? "The Guiding Light" with the lead role performed by NDOL. I think I'll stay tuned for the entire series.
Nice news from NDOL that will affect us. The writers and directors are the same for both shows.
Airdale
Penny, Mr. Parkin's emphasis as an attorney has been to take firms public. He has never been a long term manager/operator of a firm, let alone two at once (NDOL & AURC). So what is going to happen?
Viktor Feldbush is a hands on gold operations guy, some larger types according to Mr. Parkin. He will need a job at some point. Will it be for AURC or a major?
We know majors have approached AURC about a buyout or partnership, which will it be?
Our sister company NDOL has been approached concerning a buyout of all shares. It is serious enough that an 8K is issued. Does this portend the direction we will head?
We now have a PR saying we have a new member of the BOD, Mr. Evgenie Belechenko with former ties to Barrick Gold.
He is "short term" until the next shareholders meeting. Why mention his short term "until the next shareholders meeting?
Why get someone with his particular credentials "a world renowned geologist"?
Why specifially mention Barrick Gold as having former ties?
Does he still have an excellent relationship with Barrick? Boy I would sure nurture any relationship with one of the worlds biggies.
My guess is this "temporary" management picked two plumbs for companies and took itself public, wants a world renowned geologists credentials with ties to Barrick Gold to essentially reaffirm the assets AURC has, relay that information to Barrick, help set a benchmark value, aid in negotiations and have it ready for presentation before shareholders at our next meeting. We simply need a price set before us and a yes or no answer IMO.
I wish I could find the post a month or so back that presented valuation information on a Junior Gold companies worth per ounce. My recollection was between $25-50 per.
Oh, by the way, silver is around $12.75 and ounce and gold is sitting at $600.00. Not a bad time to look at selling compared to three months ago.
AIMHO
Airdale
Gorgeous weekend, I was going to ski but am home with the Flu, tired of being in bed and my lovely wife just left so I'm with you guys if you don't mind.
Interesting idea of Pugs's. Personally, I think every investor needs to contact upper management of a security on a consistent manner. Sometimes, more power to you, you have my vote.
If a Pres or CEO has to answer a question or two, often, with a large base of individuals, it will push him one way or another. Toward being more and more accurate or to being a total liar. If people continue to let the Manager know of his inaccuracies in a firm manner, a decent human will work toward eliminating them. A conman will tend to fabricate larger lies and end up caught.
There is talk that you can't trust anyone on a message board. I disagree. There are several posters I trust on boards. Here is what I look for. Someone who has a body of work, been around for awhile, have been on multiple boards and been consistent, have maintained positions in stocks they have researched heavily, show consistency by staying with stocks for a period of time even if the stock languishes for a bit, the stocks they select generally do well, (we all miss on some), are willing to share information with others, are willing to confront someone they know is absolutely wrong, generally tend to have a group follow them consistently to other stocks and as I do my research it corroborates their research. Consistent is the word, just like any good friendship.
Homie, good luck with your new profession. If I might, here is a word of advice. Take a good look at the most successful investors on these boards. Look at Westeffer in this stock or NNVC. Watch a gentleman named Lowman on CTUM or look at Creede Bighorns on LBWR, Rigatoni on the platinum board with many stocks. They have been around awhile, they may day traded and flipped a little in and out continually, but, they consistently accrued positions and were smart enough to wait for much higher levels. These guys are hitting home runs with stocks and foregoing the singles. Westeffer isn’t the biggest poster on this board, he’s they biggest holder. Watch him and learn from him. Ask him questions, I’ll bet he’ll help you out.
It was amazing to watch AURC go from around 6.5 to 15.5 cents in several days based on a possible news release by Mr. Parkin. This stock now has a following. Granted, many were little flippers that will make a couple of grand and have already moved on, but many are like West, 2Create, Benzdealer, cfpjbs, Treepeople, Rookie and many others will make big money out of this.
I have never been in a situation like this where you can sit and watch one company to learn what another will become. We have the same basic management but different timetables for the two firms. Our gentleman, Mr. Parkin, has NDOL and AURC and I think has the same MO for both. We get to view what he is doing with NDOL and then get to wait for ours to follow. I was able to accrue at a much lower price with AURC the follower and therefore that is the stock I will stay with. Pretty interesting to see an SEC filed 8-K come out this week with NDOL showing an unsolicited offer to purchase 100% of the shares. Would anyone like to wager a few shares that this same thing happens to AURC?
Enough of this rant but best luck to our core of posters who have followed this little company for the past several months. Once AURC/RSM Top Audit releases verified data regarding 7.1 million ounces of gold reserves, the lives of many shareholders on this board will never again be the same. May that change be for the better.
AIMHO
One Sick Airdale
Penny nice candid sentiments. I have had moments of nerves with this stock like almost all listed in the pinkie catagory and probably always will.
However, the relationship with NDOL has helped easy much of that anxiety. NDOL is and will remain a barameter for AURC IMO. Maturity wise, they are ahead of us and by watching the moves made both by management and the market, we can gauge how and where we are headed. A few extra days of waiting for their filing won't excite me either way after three months of waiting.
The modus operandus of Management with both will be very similar IMO. If the price drops, I'll buy some more.
By the way, congrats to the NDOL people, my measuring stick is your moneymaker.
Airdale
EZ I just got filled a short time back at .11. Someone may legitimately be selling.
Airdale
I for one hope the filing is delayed for awhile. We know some majors have great interest in our little 7.1 mil inventory. They won’t talk money until formal filings and their own DD is completed legitimizing our value.
Meanwhile, the price of gold marches inexorably upward as we list above 595 per oz much of today. Our grams per ton are high and the cost for recovery in Russia is very low. Workers are plentiful and Russians Gov’t wants foreign investment. The presence of major gold players is growing every year in Siberia.
We sit in control over 8% of Barricks existing known reserves and our value is escalating day by day. I don’t care who you are. It’s human nature, when you want something very badly and the price keeps going up, it drives you crazy.
Personally I hope Mr. Parkin has some vacation planned in the next little while, our fair value is on the rise.
Airdale
West, you may also want to take a look at Creedes LBWR.
Airdale
West good buddy, are you making some money with some of your securities today?? Grinnnnn..
Airdale
OT Lowman, I own about 20 stocks and view boards for all and several more. Of all the moderators on all these boards you are my favorite, by a goodly distance. No one spends more time or effort with more excitement and energy than you. The everready bunny dude that promotes batteries uses you as a role model. A tip of the hat to you for your incessant proding, teaching and promoting of a stock with amazing possibilities.
Airdale
This is one amazing acquisition. You have AURC, a small start up company that is cash strapped and they purchase these assets without issuing additional shares. Apparently we have a creative genius.
Ways to accomplish this? Here are my thoughts. I would appreciate any thoughts others have.
Cash from BoD personnel, doubtful without issuing more stock to the providers of said cash.
Cash from outsider, doubtful same reason.
A small cash retainer from BoD as consideration until a re-sale of the assets. Once the re-sale is completed at much higher values, Klyon Principals get fair market value for their portion of the sale. AURC basically becomes a sales broker by combining enough mineral assets to interest a Major gold player, probable.
However they accomplished it, congratulations to us all.
AIMHO
Airdale
2Create, thanks, you just dropped a bombshell. Cash and considerations? Never would have dreamed of any other means of acquiring this gold field without shares in a cash starved startup. Mr. Parkin certainly has some aces up his sleeve.
Thanks again,
Airdale
Invest, thanks for sharing your Parkin info. Its great to have another "fact digger" on board.
I did this valuation with gold at $585.
Est outstanding shares : 114,000,000
Current PPS : .07
Market Cap :$ 8,000,000.00
Gold in ounces : 7,100,000
Contract sales price oz :$ 535.00
Cost of roduction :$ 280.00
Net per oz of gold :$ 245.00
Asset value of gold :$1,739,500,000.00
Silver in ounces : 35,000,000
Contract sales price oz :$ 11.00
Cost of production :$ 6.00
Net per oz of silver :$ 5.00
Asset value of silver :$ 165,000,000.00
Gross AURC Assets :$1,904,500,000.00
Est assets per share :$ 15.26
Assumptions: Barrick Gold used under $225 per ounce figures in 2004 when viewing the cost of gold refinement in Russia, Mr. Parkin issued at $280 per ounce cost.
AIMHO
Airdale
Penny, I believe in deciphering the meaning and intent of a conversation, you learn as much by the mood of the other party as with the content. Mr. Parkin seems even more relaxed and more willing to joke a bit lately as if some of the stress is off.
I don't know when the Financials will be completed nor the Website. But the news about NDOL wherein they will drill far ahead of schedule and have two consecutive news releases states things are happening, with both NDOL and AURC.
Our time is coming. It may be this week or in two months but it is coming. You could log on next week to released financials and an immediate pop in price. We could all wake up to news of a partnership or a buyout before the website is completed. I don’t know except for Mr. Parkin saying AURC’s value will be achieved in the coming weeks.
If you don’t have as many shares as you would like, now is the time to get them IMO. The spring in Russia is coming fast and things will start to happen.
AIMHO
Airdale
Mild, the Russian Government does not do contracts with individual companies, good luck in finding that baby.
Starboy has a reputation as a balanced and fair minded poster. You can see him on boards of most quality penny stocks and he was simply offering you help.
As for you, if your ability to select a good stock is anything like your spelling and diction, you have problems.
Airdale
Mild, I don't own this but you could not be more wrong about doing business in Russia. Gerald Parkin, a V.P. and their Attorney told me all accounting and permits are handled by RSM Top-Audit. He stated the Government is less invasive than the Canadian Government by far.
He said the Russian's realize they need Capital to exploit the massive mineral/oil reserves they possess and currently it can only come from one source, from outside the country.
They have held composiums and gone abroad seeking Capitalists. In the past there were major problems, but no more.
AIMHO
Airdale
Reading about Barrick Gold’s acquisition of Placer Dome last night and spent some time on their website. Found several items I found very interesting.
Gold reserves, they currently have listed at 88,591,000 oz. This means AURC has over 8% of the reserves of the worlds largest firm. IF they were to acquire AURC at $40 per ounce, it would require only an additional 1.24% shares to be issued, at $50 per ounce it would be 1.55%, both good ratio’s compared to 8% reserves. Yes, it would most likely be stock. It saves capital and dilutes FAR less than it adds.
They are already in Russia and according to their own site are seeking other partners/acquisition. They have only been around since 1983 and have done most of their growth through the purchase of other firms. They are now the largest producer on earth and are still looking for additional acquisitions.
Per their site:
Russia & Central Asia
Barrick is well-established on four continents in some of the world’s most prospective gold districts. Now the Company is proceeding, in measured fashion, to build strategic relationships in yet another region with outstanding geological potential: Russia and Central Asia. Barrick’s approach is to identify assets that are technically and economically feasible, and ensure that these deposits receive world-class development . We are doing this on a three pronged approach – exploration, acquisition and with local partners. The Russia and Central Asia region has the potential to develop a much larger gold industry and Barrick aims to be a forerunner and partner of choice in the development of that industry.
Barrick has had a presence in Russia since 1996, using the time to familiarize itself with the geological potential of the region and its dynamics. Barrick’s exploration budget in Russia and Central Asia is significant and growing, for the Company has a positive view of economic and business development potential there and is making a long-term commitment to corporate social responsibility and citizenship in the region. Barrick has begun seeking partners and investing in selected growth and exploration companies.
Link for the above
http://www.barrick.com/Default.aspx?SectionID=1bbdc6ee-52e6-4841-b527-adbf8db96c45&LanguageID=1&....
They are in acquisition mode, they just purchased Placer Dome on March 15.
Per their site:
Barrick Completes Acquisition of Placer Dome
3/15/2006
Download this Press Release (PDF 63k)
TORONTO, Mar 15, 2006 (BUSINESS WIRE) -- Barrick Gold Corporation (NYSE:ABX)(TSX:ABX)(LSE:BGD)(SWX:ABX)(EURONEXT PARIS:ABX) -
All figures in US dollars
Barrick Gold Corporation announces that it has acquired all of the remaining common shares of Placer Dome Inc. pursuant to its statutory right of compulsory acquisition.
Link for the above
http://www.barrick.com/Default.aspx?SectionId=e1655d8c-6398-4251-8ebc-d0c02928bacb&LanguageId=1&....
They are a Canadian firm and have a member of their Board of Directors in Montreal Mr. Mulroney, a Barrister and former Canadian Prime Minister until 1993 when he joined Barrick. Members of management are also residents of Montreal and a Management member that is of Ukrainian descent, as is Mr. Parkin. (ok this is a bit sketchy but after a discussion with Mr. Parkin several weeks back he brought up Ukrainian emigrants). If I were to pick a firm with whom a deal would take place, Barrick is it. Now that NDOL is beginning to roll, I think AURC is next.
AIMHO
Airdale
Darryl Dennis, Chief Marketing Officer returned my Friday email today, on a Saturday.
Notes from the email:
*Contrary to message board rumors, there were no glitches in their website, it worked as planned.
*There were problems with the Internet internationally on release day, effecting Europe and the Southern United States. This was not something SPOOZ, Inc., could control.
*Things are progressing as planned. Their current efforts are focused on generating revenues and building the business.
My thoughts? It is impressive that Dennis is motivated enough to work on a weekend. I think this bodes well for the companies’ future success.
Since things are progressing as planned they will meet revenue expectations ensuring a successful company.
Every time I have emailed SPOOZ, they have been prompt, candid, and professional in replying. They have hired a broad base of individuals with successful backgrounds. The monthly cost to support such a broad and talented group will be expensive. The excellent market niche and management will warrant the costs involved.
Looking at the Employment section of their website shows many positions need to be filled. Success breeds growth. I really like the indicators showing where we are headed.
Airdale
Ninja, thanks. I agree except for one thing. There is an old saying in Sales, "you sell the sizzle, not the steak".
I can go into detail and give her minutiae about the technical aspects and quality of the product OR I sell the idea. I went with the latter.
This email was sent to a woman that determines whether a subject makes it on PBR. If it gets too confusing, it'll never make the show. This was intended to be the KISS formula. Keep It Simple Stupid, give her three bullet points and a synopsis.
Hopefully for her this email simply grasps her interest and we get free Pub.
Incidentally, I sent a second email moments after the first one excusing myself for being forgetful and included a second link. Just another way of getting noticed, twice.
Thanks again,
Airdale
OT Good luck with your new project Sometimes, you have been an asset to the board. Stay in touch, this may take some time to bear fruit and it would be nice to enjoy it with you.
Airdale
Star, nice site. I think they will all be effective, the product can sell itself. Thanks.
Pat, clone and send away. I simply wanted a different look so it presents a non-mass mailed effect.
Airdale
Lowman and In2lite, you are inspirations. I redrafted In2's letter just for a different look and emailed NPR. Here is the draft.
Airdale
NPR
Stacey Foxwell:
The off gasses, (land fill gas LFG), produced by landfills worldwide are relatively unknown to the average world citizen. The impact on the atmosphere however is known as increased quantities of this “natural” methane production is ever more destructive to our ozone layer.
Three firms in concert have deployed a green technology to morph this methane into natural gas, without the use of exhaust producing “burnoff”. This environmentally safe method recreates usable natural gas and is a sustainable energy source. It also alleviates the “search and scar” method currently used to locate and construct gas production plants and pipelines across our wilderness.
Who are these “green” firms that are pacesetting into the future. Surprisingly Dupont of Teflon fame has recognized the value of this technology and partnered with CSMG Technologies, Inc. the patent holder and creator of this revolutionary process. Algonquin Power Income Fund is providing revenue for the cost of infrastructure.
It is obvious that we need more public attention to hasten this technology adoption into mainstream use. We need vocal public opinion to awaken corporate and governmental America concerning emerging “green” technologies.
We have an existing process that halts methane off gases, provides renewable natural gas, and preserves our precious wilderness. Who hears the call to challenge the status quo and demand a better tomorrow?
Website for LFG: http://www.ctum.com/co2_separator.html
David XXXXX
PP per Mr. Parkin, $280.00 per ounce production costs on gold. Silver is probably almost a throwin and close to pure profit. In the past three days the value of our gold has gone up almost $30 million. Current Spot price $580+, our sales price around $530, cost of production $280 and net around $250 per ounce. For silver $11 per ounce times 35 million.
One of the nice things about having a mine versus holding gold is the net can rise much quicker. $30/$580+ versus $30/$250. We are up in value over 10% just this week while gold is up about 5%.
One other item, the cost of labor/mining is very stable compared to the upside value of our minerals. Labor will go up but gold and especially silver will be off the charts.
If AURC is in discussions with suitors, they could be very interesting this week.
AIMHO
Airdale
One more article on how screening for drug use actually reduces the costs of doing business when compared with empoying drug users.
Airdale
http://www.dpna.org/resources/models/workplacedrug.html
Implementing Drug Screening Program Can Cut Costs
The Business Ledger (Chicago)
If your employer is like most employers, you’re very interested in reducing expenses.
One quick way to save thousands of dollars a year is to implement a drug screening program-or to maximize the one you already have.
Drug and alcohol abuse cost U.S. employers $81 billion each year, according to the Department of Labor. It is responsible for lost work time, poor productivity, accidents and thefts...plus soaring health care and workers’ compensation costs. It also creates a dangerous work environment.
The fact is, 77 percent of America’s 12 million adult drug abusers are employed, or 8.2 percent of all full-time employees. You can bet they don’t leave their problems at home.
But the real question is: how many of them work for you? Don’t wait to find out the hard way.
Bad for Business: Drugs in the Workplace
In some industries, like manufacturing and transportation, the impaired judgment of drug users can cost lives. But dangers exist in white collar industries, too.
Drug users need to support their habits. Forty-four percent of users do so by selling drugs to coworkers, according to a National Household Survey on Drug Abuse. Some resort to theft, both against companies and other employees. For example, 18 percent of callers to the National Cocaine Helpline admit they’ve stolen from coworkers.
In addition, absenteeism skyrockets, productivity plummets and team morale suffers when drugs enter the workplace.
It’s been estimated that drug abusers cost employers twice as much in medical and worker’s compensation claims. In my experience, that’s conservative. For example, one food company client implemented a drug screening program in 1998. That year, workers’ comp claims totaled $1.6 million. The following year, claims dropped to $400,000. Today, workers’ comp claims total $2,500.
Implementing a drug prevention program is a shrewd investment. Now’s the time to put one in place-or give your existing plan a tune-up.
Here’s how:
Five Steps to a Drug-Free Work Environment
1. Define Your Drug Prevention Policy
You can’t implement a policy until you define it. To get started, consult The Department of Labor’s program, Working Partners for an Alcohol and Drug-Free Workplace. Or ask a reputable screening firm to help you craft a program.
The threat of a pre-employment drug test will immediately deter abusers from applying. Chances are, morale will rise-because workers don’t want to be around drug users, either.
2. Create Drug Screening Parameters
Some states have laws that regulate drug screening, so make sure you’re plan is in compliance.
There are three testing scenarios to employ:
“Pre-employment Testing - All prospective hires should be subject to drug testing.
“Random Testing - Randomly select a percentage of employees for screening at regular intervals. Make sure selection is truly random; it’s discriminatory to do otherwise.
“ Post-incident Test - Perform a drug test as quickly as possible following a work-related incident.
Don’t underestimate the power of your screening program. When the Navy first implemented one in the 1980s, drug use quickly dropped from 28 percent to under 4 percent.
3. Choose a Testing Method
Currently, there are three methods of testing:
“ Urine Testing -the most commonly utilized test, it is cost-effective and widely accepted. But there are disadvantages. For one thing, employees must be sent to an offsite lab for testing. For another, hundreds of websites advise abstaining from drugs for three days before giving a sample-a fact drug users know and use to beat the test.
“ Oral Fluid Testing - this form of testing is increasingly popular, because the oral swab can be given on site at the workplace and sent out for analysis. It costs about the same as urine testing (about $35-$40 per test), and is limited to the same 72-hour detection window.
“ Hair Testing - the most effective method available, hair testing identifies drugs taken within a 90-day period. Few drug users can outsmart this one. At $65-$85 per test, it is admittedly more expensive. But what value-while the other tests end up costing about $10 per testing day, hair testing amortizes to less than a dollar per covered day.
Whatever method you choose, use a government certified lab or agency to conduct the tests.
4. Provide Drug Use Recognition Training
Train your managers and supervisors to recognize the signs and symptoms of drug use. It’s not as obvious as you might think-did you know that crumpled soda cans are often castoff cocaine pipes?
A number of corporate security companies offer strong training programs. In my experience, managers greatly appreciate this formal training. Most admit having had concerns about an employee’s behavior, but weren’t sure how to proceed. Training builds confidence and, backed by a written drug policy, allows management to act.
5. Raise Awareness Among Employees
Take it a step further-teach your employees the signs and dangers of drug abuse, too. Encourage them to report potential problems, and give them procedures for doing so. Post signs declaring your company’s anti-drug policy.
Chances are, the only employees who object to drug screening are those with a reason. According to a recent Gallup poll, 96 percent of employees favor drug screening in at least some circumstances.
Regardless of your company’s size, industry, and location, you’re not immune from the problems of drug abuse. Implement a drug screening program now-a year from now, you’ll be glad you did.
Biography
Wayne Hovland is Vice President of Drug Screening at Aurico, Inc., a national background and drug screening firm based in Arlington Heights, IL. A Chicago police officer for 30 years, he developed his department’s drug screening program. With 20 years experience in drug prevention and training, Mr. Hovland consults with employers, public agencies, and law enforcement groups nationwide. He may be reached at 847-255-1852, www.aurico.com.
Here is a PBS article on why drug use is widespread in the U.S..
Irrespective of how little little business we are able to take from our competitors, it appears there is plenty of new business for huge growth for LBWR.
Airdale
muchhttp://www.pbs.org/wgbh/pages/frontline/shows/drugs/special/math.html
Zill was a producer and Bergman was series reporter for FRONTLINE's "Drug Wars" series
Globalization hit organized crime over the last decade and now is integral to its most profitable business -- the international narcotics traffic. Once a regional problem involving a customer base of a few million, and barely a billion dollars in sales, the illegal drug industry is now a worldwide enterprise with tens of millions of hard core consumers spending hundreds of billions (see the chart) on opiates, cocaine and amphetamines and marijuana, as well as other drugs.
Suitcase of drug money
The single largest marketplace for illegal drugs continues to be the United States. Although the market has decreased dramatically since its heyday in the mid-80's, close to thirteen million Americans still think nothing about occasionally buying a gram of cocaine, a few hits of ecstasy or a quarter ounce of weed to party with their friends on the weekends. A hard core group (see the chart) estimated at between 5 and 6 million have more serious drug habits, and may spend $100-$500 dollars a week on purchasing their drugs. These two groups - hard core users and casual users - spend approximately $60 billion dollars a year, according to U.S. government estimates.
Imagine a typical weekend in New York City. Experts estimate that at least one percent of the population - 80,000 plus - spends $200 on illicit drugs. That alone would amount to $16 million dollars a week or $832 million a year. And that's just New York.
All those drug sales mean that large amounts of cash accumulate in stash houses and collection points around the country. For the multi-billion dollar narcotics business - like any commodities business -- it is essential that the suppliers and transporters be paid. That means the money must make its way south, and the traffickers, aided by specialists in money laundering, have devised myriad methods to insure the efficient and safe delivery of their profits.
Estimates on how much money is sent south each year range from $10 to 30 billion. For Mexican traffickers along the Southwest border, the money is literally driven across the border in bulk amounts and then deposited into Mexican banks. "Steve," who was involved with the Mexican cartels in money laundering, explains this process.
For Colombians, the process is more complicated because dollars are not negotiable in the Colombian economy due to currency controls. That, combined with the fact that Colombia can only be reached by sea or air, has led to all kinds of ingenious methods for repatriating their proceeds.
When the drug money ultimately makes its way into the foreign economy, it is used to pay the salaries of shippers and processors, as well as the bribes that supplement the incomes of government officials on both sides of the border. Whole regions of Mexico, Colombia and points in between have become dependent on the demand for drugs in the United States.
Large scale drug organizations such as the once powerful Cali cartel in Colombia or the Mexican Arellano Felix brothers are said to resemble corporate organizations with division of labor and huge cash reserves designed to keep their operations moving smoothly.
What keeps the drug industry going is its huge profit margins. Producing drugs is a very cheap process. Like any commodities business the closer you are to the source the cheaper the product. Processed cocaine is available in Colombia for $1500 dollars per kilo and sold on the streets of America for as much as $66,000 a kilo (retail). Heroin costs $2,600/kilo in Pakistan, but can be sold on the streets of America for $130,000/kilo (retail). And synthetics like methamphetamine are often even cheaper to manufacture costing approximately $300 to $500 per kilo to produce in clandestine labs in the US and abroad and sold on US streets for up to $60,000/kilo (retail).
The C.I.A and other U.S.intelligence sources believe that synthetics like amphetamines and designer drugs like Ecstasy will garner a larger and larger share of the market in years to come.
No agriculture based commodities industry in the world operates on the same price differentials as cocaine and heroin, while requiring relatively little in the way of expertise.
"The average drug trafficking organization, meaning from Medellin to the streets of New York, could afford to lose 90% of its profit and still be profitable," says Robert Stutman, a former DEA Agent. "Now think of the analogy. GM builds a million Chevrolets a year. Doesn't sell 900,000 of them and still comes out profitable. That is a hell of a business, man. That is the dope business."
Losses in the narcotics business through seizures or theft are rarely catastrophic. The United Nations estimates that current drug interdiction efforts intercept approximately 13% of heroin shipments and 28 to 40% of cocaine shipments. It was because of the failure to stem the flow of product that US officials started turning to tracking and seizing the money the resulted from drug sales. In the last decade federal and state law enforcement have seized over $8 billion in drug cash and assets.
"If a load of coke gets seized, they kick out more coke at fifteen hundred dollars a kilo--cost," says former IRS investigator Michael McDonald. "If you seize money, it's dollar for dollar. They're in business to make the money."
Like any cash rich business, drug trafficking organizations invest in the legitimate economy of their own country and use investment advisors in financial instruments available in the international marketplace. "[For] the bad guy, from the very beginning, there is an attempt of integration [of illegitimate and legitimate money]." says DEA money-laundering expert Greg Passic. "You don't have the Swiss bank account with a $110-200 million bucks sitting in it. What you have is five, ten, 15 million dollars moving around, acquiring assets or companies. So when you do go in and try to dissect and pull the drug money out of it, it's hard because there's a lot of legitimate money in there."
During the 1980's, while other Latin American nations faced major recessions, the influx of billions of dollars in drug proceeds helped keep Colombia out of trouble. It is difficult to say how much money came into the country. At least 6% of the economy is thought to be directly involved in narcotics business, with a minimum of $5 billion in profits per year.
"From a pure economic sense, it's good for any country," says Passic. "But after a while, what you create are systems that are outside of the formal channels. You can't be taxed. You destroy jobs. I think there was the realization that U.S. drug money actually was hurting Colombia's economy. It was funding the extremist groups, the purchase of weapons and the other bad things that go along with it."
In Mexico, it is harder to determine the exact percentage of drug money flowing into the economy. Some regions like the rural areas around the city of Culiacan in Sinaloa state have been primarily dependent on poppy and marijuana production for decades. And resort areas have seen a sudden explosion in construction and real estate prices when the drug economy is booming.
"I think it's very difficult to know because of that gray area of drug, non-drug activities. It's not that clear-cut in many cases," says Mexican scholar Jorge Castañeda. "There are regions of the country where the drug economy really is central to the local economy. There are regions of the country or times at which the drug economy is enormously important. To come up with an overall estimate is very difficult because by definition this is all untraceable." Castañeda also says that there was widespread corruption in Mexico's dominant political party in the 20th century, the PRI. Because of this, Mexican drug money often became intermingled with other types of corruption money from privatization and bribes, making it difficult to sort our which was which.
While the drug money may provide much needed influxes of capital to these economies, experts now agree that over time the money can devastate legitimate business and long term development. "A normal businessman, he needs money, he needs capital and he's going to borrow that," says former State Department official Jonathan Winer, "He's going to pay 6%, 8%, 10% [interest] on that money. He's going to earn a profit on it to pay that back. But the drug trafficker is happy to pay 6% or 8% or 10% loss, reverse interest, to have that money laundered. So they have a competitive advantage over everybody. So they go into a business--they can take that business over. And no one can compete."
While the US drug user may not intend to invest in this international drug economy, every dollar spent purchasing those weekend escapes is ultimately fueling a mammoth and destructive system that depends on our drug dollars to survive. "That population of hard core users generates the funds," says former IRS agent Mike McDonald. "They generate the dollars that go back to Mexico and go back to Colombia. They generate those dollars that in Colombia and in Mexico are turned into power, turned into extortion, turned into homicides, turned into corrupting foreign governments, arms dealing, and expanding criminal enterprises around the world."
Drug
1988
1990
1992
1994
1996
1998
Cocaine
76.9
61.3
49.4
42.2
41.3
39.0
Heroin
21.8
17.6
10.9
10.5
11.7
11.6
Marijuana
11.3
13.5
12.5
11.4
9.0
10.7
Methamphetamines
2.4
2.4
1.6
2.1
2.1
1.5
Other Drugs
3.3
2.2
1.5
2.6
2.7
2.3
TOTAL
115.7
97.0
75.9
68.6
66.8
65.0
** Source: Abt Associates Inc., What America's Users Spend on Illegal Drugs, 1988-98
Amounts are in constant 1998 dollars.
MX, March 21, 2006 was the date of the email. I asked for permission to post this and he consented.
Airdale
Rook, playing the stock market is very similar to playing in Vegas. It is always a risk versus reward scenario. How much are you willing to risk for what you figure the reward will be. The risk, this stock isn’t what is claimed. The reward, mining rights to 7.1 million ounces of gold and 35 million ounces of silver at ever increasing values. If AURC’s rights to the minerals are there, the PPS is grossly undervalued at present and without a hostile takeover, a buyout will not happen near these low prices IMO.
AURC's value is currently based completely on what Mr. Parkin is telling us. They haven't released the promised financials, the website hasn't been completed as stated and there have been no new releases showing production in the field. When information isn't available for research, the perceived risks rise and in inverse proportion the share price drops. Why the dearth of information and the apparent lack of action regarding these items? I don’t know.
We get hints of value. Would a successful Attorney risk his occupation and 20+ years of building a reputation promoting a Penny Stock? One of Mr. Parkin’s main business’s Monimpex takes firms public, that is what he risks losing. If the relationship with AURC weren’t real, ASM Top-Audit would have data linking them with AURC removed, right? Why would Mr. Parkin present press releases worldwide that if false, could lead to his prosecution, fines and possibly imprisonment? If you are going to take something public and know it is a scam, why not pump the stock and dilute to the maximum to get every penny of revenue available? Why spend money from your own pocket and purchase shares on the open market? Why tell shareholders you are funding the company from your own monies?
Here is a quote from a recent email from Mr. Parkin,
“The company’s assets are considerable and the debts are minimal. It is understandable that shareholders become impatient and this drives them to sell resulting in a lower stock price. Nevertheless, if a shareholder has some foresight, it is evident that the assets will not deteriorate but will increase in value due to both the world economy and the newly developed appetites of India and Chine for gold and minerals.
In a few weeks, the stock shall reach its just value which exceeds by far that which the market has attributed to it. I have not yet met an expert who advised me that the stock was not greatly undervalued.”
This email is a bold statement that displays confidence. Personally, I will continue to hold long term unless something dramatic and empirical is revealed contradicting AURC’s statements.
AIMHO
Airdale
FWIW, gold has broken through the new recent high of $578 and is now at $585 per ounce while silver is near $11.50. Now lets hope for some news.
Airdale
Nice post Common-cents. I happen to agree strongly with your buyout sentiment. I think it's 90/10 we sell or partner versus finance and process.
If we end up being sold, here is a question I have asked myself. Would I rather be cashed out of my stock, or have stock exchanged by the acquiring firm?
As an example of how Corporations value cash, eight years ago, I sold my small freight auditing firm to a corporate entity. They sent in auditors to value the business and then offered cash for that determined value, OR, they offered a thirty percent premium for taking stock in lieu of cash. The caveat, the stock was Series 144 Restricted and I could only sell 20% per year to slow dilution of the share price.
Based on gold's upward price and the big hit one would take for short term capital gains, I would certainly think an exchange would be most beneficial.
Just some thoughts,
AIMHO
Airdale
Creede, very nice job of researching this stock. I have been picking up shares for the past several weeks and am impressed with the relationship you have created with Mr. Morris. Nice work.
Here is an article concering drug testing at the high school level an indication of how entrenched this prodecure is in our society.
Airdale
http://www.pbs.org/pov/pov2003/larryvlockney/special_welcome.html
POINT OF VIEW
Letters from Lockney
STUDENTS SPEAK OUT
Drug Testing: Pass or Fail?
Imagine you're a high school student in one of the five percent of districts nationwide that drug tests students. The majority of schools test only athletes, so let's say you're on the basketball team. Or maybe you work for one of the major U.S. companies that drug tests their employees. According to the American Management Association, nearly 100 percent of Fortune 500 companies conduct pre-employment and random drug tests on employees. In either case, this is it. You've been called to report for a urine test. Here's what to expect.
In most high schools, students are tested in the school building. Some tests are administered by the school nurse or the school contracts a team from the testing lab to come once a month to collect urine from students. Most companies require their employees to go to a lab for their test.
You'll probably be asked to present an acceptable form of identification, so that the person trained to receive, inspect, and ship urine samples (the "collector") can confirm that you are the person to be tested. The collector will note what type of identification you offer.
The collector will ask you to remove unnecessary layers of clothing (e.g., coats, jackets, or a sweater), and may tell you to empty your pockets. Collectors are instructed to look for evidence that a donor plans to tamper with the collection process. Donors are typically allowed privacy while urinating, but if the collector thinks you intend to substitute, dilute or adulterate your sample, he or she will most likely decide to conduct a direct-observation collection (in which a same-gender observer accompanies you into the bathroom stall).
You will be given a sealed collection container with graduated markings. Collection containers have a wide mouth, and are large enough to hold at least 55 mL of urine — a bit larger than a shot glass.
Before producing the sample, you should wash and dry your hands. Any chemicals or other residue on your skin could contaminate the specimen, and invalidate the test. After you wash your hands, water in the sinks may be cut off. The water in the toilets will likely be dyed, to prevent you from diluting or adulterating the sample. Unless there are reasons to suspect you will tamper with the specimen, you should be allowed to fill the specimen cup in the privacy of a closed toilet stall. The collector may stand outside the stall, however, to listen for any unusual noises.
Once the collection cup is filled, you should seal the lid and hand it to the collector, who will measure the specimen's temperature, the volume, and inspect it visually for evidence of contamination (e.g., floating particles, unusual color or odor). SAMHSA's standards allow a temperature range between 90 and 100 degrees, and require a minimum of 30 mL of urine. Depending on what kind of testing is to be done, the sample may be transferred to a single specimen bottle, or divided into two specimen bottles.
You and the collector both have to sign a chain-of-custody form, affirming that the specimen is appropriately labeled and that there were no irregularities in the collection. The form is then sealed in a plastic bag with the specimen and sent to an outside laboratory for analysis.
At the laboratory, specimens are initially screened for validity (any evidence of adulteration or contamination), and then for a specific group of drugs or drug metabolites. The most common urine test screen for evidence of THC (the active ingredient in marijuana), cocaine, amphetamines, opiates and phencyclidine (PCP). This first round of testing is most often done by immunoassay (a process where antibodies react in the presence of target chemicals or metabolites). Specimens that test negative for all drugs and metabolites are presumed to be negative, and undergo no further testing.
LENGTH OF TIME DRUGS REMAIN DETECTABLE
Methamphetamine: 3-5+ days in urine
1-3 days in blood
Cocaine: 5 hours in blood
12 hours-3 days in urine
Codeine: 2-3 days in urine
Morphine: 3-4 days in urine
Heroin: 3-4 days in urine
PCP: 1-3 days in blood
3-7+ days in urine
Marijuana (THC): 2-3 days in blood, infrequent user; up to 2 weeks in blood, heavy user
Several days to 30 days in urine; up to 3 months in heavy user
Specimens that test positive on the initial test are re-tested, using a more exact method, usually gas chromatography/mass spectrometry. This confirmatory test provides better evidence that a specific drug or metabolite is present. Finally, SAMHSA's guidelines call for a physician to consult with the donor, to learn whether any prescription medicines could have affected the testing procedure and, if that is not the case, to consult with the donor on substance abuse treatment.
One of the fastest-growing segments of the industry is on-site testing, in which testing companies provide simple kits for employers or schools to do their own testing. While these kits must still be approved by the FDA, they rely solely upon immunoassay analysis for their results. SAMHSA recommends all positives be confirmed by an outside laboratory, but legal guidelines vary widely. If you fail an on-site test, you may want to seek out another kind of testing, through an independent lab that performs gas chromatography/mass spectrometry.
West, IMO I don't think we will ever get to a financing package. I think we end up with suitors and then a partnership or buyout.
I have attempted to steer the last several conversations toward financing only to receive little feedback. I asked this past week how difficult it would be to garner a loan with our micro priced stock. Mr. Parkin expressed no worries concerning our stock price and has talked more about how larger firms view juniors, like AURC when they have locked up assets.
I continue wondering lately why the website and financials haven't been completed. He said they are working on both but the delays are becoming mythical.
One thought does come to mind, that they wouldn't need either financials or a website with a buyout. If you knew an acquisition was imminent, would you spend time, money and effort completing projects that would never be used? There are also far more meetings than two months ago when I began calling. Purely speculation but it is a posibility.
2create, if you are reading this, do you have an email address you wouldn't mind putting on pubic forum, I would like your opinion on a matter.
AIMHO
Airdale
Best parts of today’s announcement to me, "controlled study" wherein they are doing apples to oranges comparison and finding our oranges aid in faster healing surgeries. This sounds like a necessary element of preparation for presentation to a national agency that controls/allows medical procedures.
Did someone say “tissue welding” with a nearly non-invasive procedure? "Welding of lung tissue may be performed through a video thoracoscopic procedure or an open surgical procedure.’’ We are miniaturized and ready to make your healing process negligible.
This company continues to impress with their patented capabilities.
AIMHO
Airdale
OT Penny TA thanks. Do you have an email address you wouldn't mind posted in public? If so I have some info for you.
Thanks again,
Airdale
Penny TA. According to your IHUB bio, you are a dweller in Montreal, no? Based on assets to debt ratio AURC is vastly undervalued and could present an opportunity for huge gains.
Would you consider a visit to the Monimpex/AURC/NDOL office at 7151, Jean-Talon east, Suite 110, Montréal (Québec)?
No pressure, no hype, just a fellow investor looking for more answers. I have talked to Mr. Parkin 7-8 times and he seems to be a gentleman intent on growing a business. I am from the western U.S. and have considered flying up for a visit to observe the office, demeanor and activity. You obviouly are much closer if you have an interest.
Regards,
Airdale
I've been in contact with Mr. Parkin. I specifically made note of the eroding share price and confidence that have dropped in lockstep. I expressed concern for shareholders that may have purchased in the .10/.20 range and were under great duress to preserve capital buy selling in the current range.
His reply, the company’s assets are considerable and the debts are minimal. It is understandable that shareholders become impatient and this drives them to sell resulting in a lower stock price. Nevertheless, if a shareholder has some foresight, it is evident that the assets will not deteriorate but will increase in value due to both the world economy and the newly developed appetites of India and Chine for gold and minerals.
He remains calmly confident and reiterates everything we have been hearing for the past several months.
Am I happy about the current share price? Since at its apex price I was up over $140k and am now near level, nope. I summarized what I feel are the weaknesses and strengths yesterday in post #3526. The reasons I remain holding are those strengths. The market segment gold and silver, ounces held 7mil and 35 mil, the demand for said assets is rising and spring is just around the corner in Montreal and Moscow. I expect a thaw and rise in price and attitude. I still think patience will be rewarded.
AIMHO
Airdale
Rookie, I'm proud of you for stepping up and contacting Mr. Parkin. No one will protect your investment better than you and any efforts you personally put forth. It takes time to develop confidence in individuals with alias's on a message board. Many have a bias or slant with an agenda as a short or long.
I have tried to portray exactly what went on in the conversation by making personal comments concerning Mr. Parkin's demeanor. I feel that is part of the conversation and you appear to have done the same. There is nothing like getting answers right from the top like you did today. Thanks for the information.
Regards,
Airdale
cfpjbs, I'll say that I'm as suprised as anyone that we are this low again. Here is my take on why.
It is all a lack of news and follow through by AURC Management, period. On a security that trades thinly as this does, with no news and little interest, a MM that is already short shares can continue to sell short as many shares as they want on the ASK and create as large a supply as they want.
When they do this they set a ceiling we can't move, without volume.
At this point the bid starts to get hit and the price erodes. The more the price erodes, the more people hit the panic button and sell, usually at the Bid. (a bid whacker) This continues and the resolve and mentality of those that have held gets weak and it becomes an avalanche of people selling at the bid and the price drops.
I like most, am now upside down. I also know this is a game with the MM's. IMO they are being very successful in applying pain to shareholders through this price erosion. They won't cover until they feel strong upward pressure through buys at the ASK. If they have made good money, they won't continue to get shorter, they will cover. What we need is news that will put pressure on the stock to rise. At this point, everyone here has to assess their pain threshold. Some of the questions each must ask are what is the value of the security? How much can I afford to lose? Is management aligned with me the shareholder? How low do I want to go before selling? When will financials be released?
What am I going to do? I’m calling Mr. Parkin this afternoon and asking if he has concerns about the share price and shareholders at this level. I am going to relate that many shareholders, like he is doing, are putting money out of their own pockets to float the company. How, by being upside down and still holding we support the firms share price. I am going to apply more pressure for management to simply comply with statements they themselves have made concerning their performance. Meanwhile, I am holding and watching her drift down.
Airdale