Applied Minerals Inc (AMNL)

[cunning plan]

Lawsuits are a bad thing in general and now there are 4 law firms who are interested in a class action. To be sure, the lawyers will likely make the most money from this and shareholder-losers will get pennies on the dollar.

But what bothered me about the Oct 9 announcement was not so much the restated financials, after all, anyboby can make a mistake and in the absence of information to the contrary, continue this error for several years.

What I think drove the PPS down was the part about the company having no plan, insufficient processing capacity, questionable reserves, no supply contacts. To just dump this on the market like that was terrible. You have to wonder what they were thinking. Normally those sort of announcements are couched in terms of "new strategy", "purchasing equipment", "more sales focus", something to go forward with. This announcement made it look like they wanted a major correction to take place. And not surprisingly, it did.

I'm glad you made some money on this one. I lost a lot because I believed what the company put out in the way of announcements and filings.