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exciter, the only way to tell if a company is printing shares (dilution) is by reading the SEC reports. But DMXP does not file SEC reports, so there is no way to know. You can look at the past rallies and use some common sense to get some idea how much stock printing the company has been doing.
Value mining stocks
In case anyone is interested, I did a fair amount of research last month to find what I believe are the best value mining stocks. These are my favorites in order:
Symbol, Name, Metal, Price (as of 2/15/07), Market Cap, Notes
RNO, Rio Narcea, Nickel, 2.91, 520M
Should earn about $.19 in Q4, P/E of 4.
AUY, Yamana, Gold, 14.12, 5B
Large, growing, quality gold stock, forward P/E around 15.
GBN, Great Basin, Gold, 1.89, 220M
Future mines in Nevada and South Africa, discounted forward P/E estimated at 11.
GLE, Glencairn, Gold, .55, 150M
Growing, leveraged producer. P/E should be around 10 when mine problems are fixed.
QADMF QUA.to, Quadra, Copper, 6.58, 300M
Q4 earnings should be spectacular, probably over $1 per share.
BLEFF BLE.to, Blue Pearl, Molybdenum, 6.94, 1.1B
Just bought out a large private producer, P/E around 5.
BWLRF BWR.to, Breakwater, Zinc, 1.58, 700M
Current P/E around 8, new mine in early 2008.
LMGGF LIM.to, LionOre, Nickel, 12.39, 2.5B
Growing producer, Q4 earnings should be excellent, P/E around 4.
CSFFF CS.to, Capstone, Copper, 1.50, 130M
Growing producer, forward P/E around 6.
SLMXF SXL.v, Slam, Zinc, .15, 14M
Tiny high risk explorer that seems to have a rich zinc property.
Note: P/E estimates depend on metals prices.
No guarantees that they will actually go up. The market is fickle and will sometimes ignore good earnings.
"Their drilling has been minimal, and they have not proven any reserves according to industry standards. Until they do, it will be very difficult to find a buyer."
For the record, I was the only person on this board who questioned the assay by Metallurgica de Mineras S.A. Chances are, that is the reason that a deal could not be done with a larger company.
Posted by: OriginalFred
Date:9/13/2006 10:18:27 PM
angry, an attempt to be bought out is commendable. My concern is this. Their drilling has been minimal, and they have not proven any reserves according to industry standards. Until they do, it will be very difficult to find a buyer. The other problem is that the company that did the drilling does not seem to exist. I could not find any record of the company on the Internet. Very strange.
Posted by: OriginalFred
Date:9/14/2006 2:29:10 PM
I could find no record of a relation of Carlos Rodriguez to those other mines. If he did work on defining reserves for existing mines, he should know about industry standards and the proper way to take core samples and define reserves.
I would still like to know if anyone can find any information about "Metallurgica de Mineras S.A." The company does not have a web site, and there is not one reference to this company on the Internet besides the Grand Pacaraima press release.
Last, "Carlos Rodriguez" is not exactly a unique name. That could be anybody.
Posted by: OriginalFred
Date:9/14/2006 3:26:29 PM
There is nothing wrong with shallow holes, but you have to take enough samples in the right configuration to satisfy industry standards on defining reserves. They have not done that.
Instead, they have thrown out a name of someone who has supposedly been involved in defining reserves at other mines. This tactic does not add credibility to their claims.
Do not get me wrong. I am happy for them in getting a deal. But I think we have to admit the deal is pretty lame compared to what was expected.
I think I have been vindicated in suggesting that the assay by Metallurgica de Mineras S.A. was worthless. NI 43-101 is what is needed to prove reserves. I never did find any record of Metallurgica de Mineras S.A. on the Internet. I doubt that is a real company. It is probably just a guy with a drill.
I guess the company finally realized that it needed an NI 43-101 before any big company would deal with them. They are finally off on the right foot. It will be many months before they have anything to report on the drilling, and an actual mine is years away. For someone with a lot of patience, this could eventually pay off, but a lot of things could go wrong during that time.
"leading Canadian-based mining concern with significant mining holdings within the country of Venezuela"
Original release:
Sep 7, 2006 -- Grand Pacaraima Gold Corp. recently commenced discussions with a leading Canadian-based mining concern with significant mining holdings within the country of Venezuela for development of Grand Pacaraima's Venezuela-based properties.
My edited version:
Grand Pacaraima Gold Corp. recently commenced discussions with an unknown Canadian-based exploration concern with no idea where Venezuela even is on the map for development of Grand Pacaraima's Venezuela-based properties.
This is a far cry from the Crystallex buyout deal that people were hoping for. Who ever heard of Regent Ventures? They are a penny stock on the Venture exchange. Is this the best they could do with a property that supposedly contains 3.6 million ounces?
I had previously questioned the assay by "Metallurgica de Mineras S.A." It looks like no one trusts that assay. They need an assay that is NI 43-101 compliant. It looks like Regent is going to give it a try, but they do not have the resources to build a mine.
lhsmith, that is a very good post that summarizes the situation well.
As for the "promise", maybe that is too strong a world, but nevertheless, they told you they thought something might happen by the end of January, and it did not happen. At the very least they owe you an explanation.
greencheetah, it is good to see you here also. It is kind of funny being an "old timer"! Some of these penny stocks are just fascinating to follow over the long term.
I agree with you that there could be another spike. The only thing working against it is the newly printed shares that I believe are flooding the market. Of course I have no proof because the company does not report.
Durk, it is so nice to see intelligent life on this board. Why do people get married to these pink sheet garbage stocks. Everyone knows that 99% of pink sheet stocks are junk, but they always think that they were smart enough to find that illusive 1%.
I really have nothing against this particular stock. In fact, I have made money on it, so I really kind of like it!
I guess I just get frustrated by the revolving door of fools who think they have found the magical pink sheet 1%.
Sure this stock has pump and dumps. It had a big one back in May 2005, and it had another big one this month. Plus there were a few small pump and dumps in between. The problem is they always get squelched because the company prints shares like crazy every time the volume picks up.
Typical worthless pump and dump scam.
What else do you expect from the Pink Sheets?
Translation: We need to print more shares, so we will throw together a few more meaningless press releases. How many shares do you think they printed on that recent run up to $.003. I am guessing about 100 million sold at an average of $.002. That is $200k that management can put in their personal bank accounts (as salary, of course).
Of course, you will never know what the company is really doing with shares or the money because they do not report. Who would buy stock in a company that does not report?
I owned this stock briefly long ago and made a nice profit. The only way to profit here is to play the pump and dumps and get out quickly. The company prints a few hundred million shares on every pump and dump, so you are guaranteed any rally will quickly be squelched.
Yea!!! You cannot go wrong investing in a pink sheet penny stock that does not report and takes forever to release some simple drill results! This is a winner!
lhsmith, any news on the possible buyout? They are already 2 weeks late according to the January close you were promised. If I had money invested here, I would be getting pretty curious about the delay.
Notice how the board censure has gone AWOL? He sure was quick to delete my posts when I talked about the history of UDVE, but now anything goes. Do you think he sold?
They have nothing, just like I thought. Not even ONE SINGLE micro diamond. It is pathetic that investors had to wait all that time for that dismal report.
Posted by: OriginalFred
Date:2/7/2007 11:06:22 AM
Post 5389
PR translation: We found nothing, but please keep buying so we can print more shares.
Will people ever learn?
PR translation: We found nothing, but please keep buying so we can print more shares.
Will people ever learn?
lhsmithnet, being that you are the only poster on this board who posts anything on topic, I think you should stay.
It is unfortunate that the board censure is quick to delete on topic posts just because they are negative, but he is unwilling to control off topic rants and mindless pumping.
"hope you all learned your lesson on this one"
I cannot believe you just said that. I am shocked.
lhsmith, thank you for the thoughtful reply. Like you said, it is dangerous to be completely honest on iHub message boards because they are so widely censured. I rarely even use iHub anymore because most of the boards are just mindless pumping. That is why it is a pleasure to find an honest long such as yourself.
I assume you have been following this stock since the UD** days. It originally got my attention when a friend sent me a spam e-mail he had received around the end of 2003. The stock was around $.05, and it ran up to $.15 before it started its relentless decline with reverse splits.
When the stock became GPGD, it did look like they might have a real property. As you know, I had a lot of questions, and the company pretty much went silent after a barrage of press releases.
After the press releases stopped, the real time quotes were eliminated from PinkSheets.com. I did bring this up, but I was not trying to insinuate that the company was going to be de-listed. I just thought it raised another question. The real time quote feature on PinkSheets must be paid for by the quoted company. I was just wondering why they would drop the feature.
Changing strategy does answer most of my questions. If the company decided that selling out to a bigger company was the way to go, there would be no need to promote the stock anymore. I think the case for a buyout is valid, and I think there is a good chance it will actually happen. I personally do not feel like gambling on it, but I can fully understand why you are enthusiastic about your investment here.
I will be following this closely, and if and when the buyout happens, I will be the first to congratulate you.
lhsmith, I doubt I will go long again until I see a press release verifying that there actually is a deal. I have seen too many rumors about penny stocks that never come true. Investors just end up waiting and waiting for news that never comes while the stock drifts down into oblivion.
I do hope that is not the case here, however. I would be very happy to see some real news. Although I have made money on this stock, making money is not my purpose here. I have been following this stock for years in order to learn more about the life cycle of a penny stock. I have learned a lot from this stock, and the educational process has been enjoyable.
Please share whatever details you are able to. I am always curious.
"According to my source, GPGD is set to sign a merger at the end of the month"
lhsmith, the end of the month draws near. Any updates? Can you go into more details on your "source"?
"you have repeated yourself ad nauseum"
Funny, I do not remember you ever saying that to a certain pumper who posted a dozen times a day. Why is that?
lhs, please post when you have time to go over the details. I have not formed an opinion about this stock, and I am always interested to learn more.
I have no desire to "bash" this stock, you, or anyone else who is honest and not trying to suppress honest opinions. I am just curious and want to learn the truth.
Yes, I was the only one who questioned this company, so obviously there has been no censorship since I left. That is pretty obvious.
How can you say I am wrong about GPGD? I do not even have an opinion about GPGD. I have a lot of questions, but I have no idea if this company is a scam or not. They could easily be working on that deal to sell out to the Canadian company. How can you, I, or anyone else know? They have not even put out a press release in months. We are all in the dark.
It still amazes me that a babbling pumper can post a dozen times a day and clutter the board, but no one says a word. Then someone like me comes along, I post an average of maybe once per day, and my posts get deleted. That is what I get for questioning some things and talking about the history of the stock symbol. In fact, one of my deleted posts was an answer to one of your questions. I think you asked how I knew that UDVE was a scam. I posted a history of the company's lies. You may have never read it because the board Nazi wiped that one out fast.
I am sure this post will be gone soon. You better read it quickly.
Is everyone censured now? This board has died. That tends to happen when varying opinions are censured.
Good job moderator! You have killed your own board.
By the way, this stock used to be UDVE, a known scam. (Now this post is sure to be deleted by the Nazi who runs this board.)
Show me where those posts insulted anyone or bashed this stock. You cannot. I only pointed out facts about this stock and its history. You cannot handle the facts because you want uninformed suckers to buy this stock. You are a penny stock promoter plain and simple.
You censorship of this board will be reported to the SEC. You are not the only moderator who is censuring posts in order to promote penny stock scams. If the SEC gets enough complaints, they WILL investigate. Your personal information can easily be subpoenaed. You and your penny stock cronies, along with Matt, may have to answer for your promotion of penny stock scams.
https://tts.sec.gov/acts-ics/do/complaint
By the way, I am saving my posts as evidence. Just thought you should know.
Alex, I must hand it to you. You do not discriminate.
RNO is a buy from a value standpoint. The reason it is down is because the last quarterly report was very disappointing. The grades and the recoveries were terrible, and the loss on their copper hedge was much worse than expected.
Management had affirmed production guidance at the Denver Gold Forum on Sep 25 when it should have been obvious that they were not going to miss their production goals for the quarter. That has called into question their honesty and competence.
Despite the poor results last quarter and the questionable management, this remains one of my largest stock holdings. The high price of nickel allows this company to print money, and that can make up for a lot of mistakes.
In Q4, the grades will likely remain low, but the recovery should improve since they cancelled the 2 month test on separating copper and nickel concentrate. The losses on the copper hedge should finally be played out as the future price of copper is finally dropping. The main wild card is the cost of shutting down their 2 high cost gold mines. The new low cost gold mine will not be producing gold until the end of 2007.
Okay, Alex, I will not gloat just yet. Maybe the company will some day announce that they are doing something with their property. Maybe they will even do an assay to NI 43-101 standards!
I just wanted to point out that I brought up valid concerns when no one wanted to hear them. So far, the market has validated my concerns, and remember, the market is always right.
What do you mean by "IHub just forced us to keep our mouths shut"? I thought that anything goes as long as the moderators allow it? I have noticed some moderators will delete posts as "off topic" just because they do not agree with them. That seems like censurship to me.
Apparently my criticisms of this company were accurate. Even the pumpers have abandoned this garbage.
But some people did not like my posts. Why are people so afraid of the truth?
All indications are that nickel will be in short supply for the next 2 years. That is part of the reason I think RNO is an excellent buy at the current price level.
Even with lying management, this stock is definitely a buy in this price range. The price of nickel remains high, and management said they will increase throughput in Q4 (if we can believe them this time).
The losses on the copper hedge should finally moderate, and the company has 700k pounds of unsold nickel in inventory from the last 2 quarters.
The main down side is that the winding down of the gold mines should be costly.
I will not attempt to guess at earnings, but they should be strong in Q4.
Quote from Yahoo board. I think this sums up my feelings about management right now.
-----
Management really acted very unprofessionally by sitting on the fact that production was going to be WAY down and allowed investors to get creamed. They lied in Denver when they told everyone they were 'on target' to reach their production goals when they knew they wouldn't.
Management has once again proven their incompetence by mining nickel at a ridiculously high cash cost of $4.84 per pound. That is including a huge credit for copper at a record high price. If they turned in this pathetic performance 1 year ago, we would be looking at a huge loss. The high price of nickel and copper bailed them out. Maybe it is better to be lucky than smart. Management better hope so.
Bankrupt
Form 8-K for ADDISON DAVIS DIAGNOSTICS
19-Oct-2006
Bankruptcy or Receivership, Financial Statements and Exhibits
Item 1.03 Bankruptcy or Receivership.
As previously disclosed by Addison-Davis Diagnostics, Inc. (the "Company") in its periodic filings with the Securities and Exchange Commission, on January 5, 2005, Steven H. Reder ("Reder"), a former officer and director of the Company, filed a lawsuit against the Company in the Superior Court of the State of California for the County of Los Angeles (the "Court") entitled Steven Reder vs. QT5, Inc., a Delaware corporation, now known as Addison-Davis Diagnostics, Inc., a Delaware corporation Case No. BC 326875, alleging breach of his employment agreement, wrongful discharge, libel and breach of a certain promissory note (the "Action"). On September 15, 2006, the Court announced that it would rule in favor of Mr. Reder and tentatively awarded damages in the amount of $1,926,950 to Mr. Reder by the Company. No judgment has been entered by the Court and as a result of the automatic stay imposed pursuant to 11 U.S.C. Section 362(a) as a result of the filing of the Company Bankruptcy Petition (as defined below) on October 5, 2006, any further action in the Action is stayed, including the submission of and the entry of a judgment.
On October 5, 2006, the Company, filed a voluntary bankruptcy case under Chapter 11 of the United States Bankruptcy Code (the "Company Bankruptcy Petition"). The Company Bankruptcy Petition was filed in the United States Bankruptcy Court for the Central District of California, San Fernando Valley Division, and is designated as case number SV 06-11790 MT. The date jurisdiction was assumed is October 5, 2006. As this is a Chapter 11 case, the Company has been and remains the Debtor in Possession and as such has the rights and duties of a trustee as of the date of the October 5, 2006 case commencement.
Bankrupt
Form 8-K for ADDISON DAVIS DIAGNOSTICS
19-Oct-2006
Bankruptcy or Receivership, Financial Statements and Exhibits
Item 1.03 Bankruptcy or Receivership.
As previously disclosed by Addison-Davis Diagnostics, Inc. (the "Company") in its periodic filings with the Securities and Exchange Commission, on January 5, 2005, Steven H. Reder ("Reder"), a former officer and director of the Company, filed a lawsuit against the Company in the Superior Court of the State of California for the County of Los Angeles (the "Court") entitled Steven Reder vs. QT5, Inc., a Delaware corporation, now known as Addison-Davis Diagnostics, Inc., a Delaware corporation Case No. BC 326875, alleging breach of his employment agreement, wrongful discharge, libel and breach of a certain promissory note (the "Action"). On September 15, 2006, the Court announced that it would rule in favor of Mr. Reder and tentatively awarded damages in the amount of $1,926,950 to Mr. Reder by the Company. No judgment has been entered by the Court and as a result of the automatic stay imposed pursuant to 11 U.S.C. Section 362(a) as a result of the filing of the Company Bankruptcy Petition (as defined below) on October 5, 2006, any further action in the Action is stayed, including the submission of and the entry of a judgment.
On October 5, 2006, the Company, filed a voluntary bankruptcy case under Chapter 11 of the United States Bankruptcy Code (the "Company Bankruptcy Petition"). The Company Bankruptcy Petition was filed in the United States Bankruptcy Court for the Central District of California, San Fernando Valley Division, and is designated as case number SV 06-11790 MT. The date jurisdiction was assumed is October 5, 2006. As this is a Chapter 11 case, the Company has been and remains the Debtor in Possession and as such has the rights and duties of a trustee as of the date of the October 5, 2006 case commencement.
Loss of $893k on sales of $10k last quarter. Stock price down from $5 to $.50. Market cap is 179 x $.50 = $90 million. In my opinion, it is still grossly over valued, and the business plan is probably a failure.
"Bob Carlson's Retirement Watch" is a joke. More like if you listen to Bob Carlson, you can watch your retirement go down the drain.
Can you provide a link showing that NMCX won the case on all counts?
This company seems to have had a few legal troubles. At the time they had all this supposedly valuable ore, the SEC was investigating them.
http://www.sec.gov/litigation/complaints/comp18016.htm
http://www.sec.gov/litigation/admin/34-47473.htm
http://www.sec.gov/litigation/admin/34-47474.htm
In my opinion, these are legitimate links proving actual legal problems for this company.
In my opinion, this stock is a scam. If their ore had the value they claim, they would have been extremely profitable years ago. Instead, the company appears to be in all kinds of legal trouble.
This is only my opinion. The ore might be worth a fortune, and all the delays in realizing that fortune might be part of an ingenious master plan. Also, I cannot verify that this company has ever been in legal trouble. Please do your own DD to verify the accuracy of my statements.
Here is rbtree's DD post.
http://www.investorshub.com/boards/read_msg.asp?message_id=6159894
The information given by rbtree is his opinion only. I do not verify the accuracy of his post. This information is provided so that people may be exposed to varying opinions before they make an investment decision. Proper DD should be done before making any investment.