Given you can read what I have written re SFMI on IHub, I'm not impressed by the display of the lack of skill in DD.
What I have posted, including HERE, is that I first bought SFMI when I learned they'd bought these properties... because I was looking at the properties myself at the time they bought them. The dirt they have isn't perfect, but for what it is, and what you could do with it without very much $, it is first class. SHOULD be the ideal place to start to build a real company...
My criticisms here are targeting the FACT that they DO HAVE that opportunity, are not taking advantage of it... and are instead playing stupid games with it... dangling it as bait to sell shares, while not connecting the value to the shares.
What it seems will happen, given the structure they have, is nothing atypical for the pink sheets... where you will often find good assets being postured to appeal to investors greed even though they are values that are not well connected to the shares.
What happens if Goldcorp calls the $1.2 million not tomorrow ?
They will sell SFMI shares to have investors pay to sustain their ownership position, develop the easy pickings, then skim the revenue to take the profits leaving only enough $ for SFMI to pay the bills, and when the metals run, they will call the note to Goldcorp, take the properties back, and sell them to someone else willing to pay more for them than what they paid. I'm not saying THEY won't make money with that plan... I'm saying they don't intend for YOU to make any money with that plan. Knowing what they are doing, you can still make money trading the stock. You won't make money by investing.
What they SHOULD do is flatten the structure, cut out the BS games with the structure they have designed to skim the profit and isolate asset values from the shares, quit paying the wife $80K and hire an actual mining type to run SFMI instead ? Doing that might actually allow them to make a go of it and succeed ? It looks to me like that is NOT what they intend to have happen. If I'm wrong about that... why do we see what we do in the structure, and where is the plan that we can see that suggests it will allow them to succeed ?
If you want to pump the stock based on the quality of the dirt, instead of talk about what it takes to make a mining company actually work, or what you need to see to expect any value that exists will remain attached to a share ? Feel free... but, that isn't what I'm here looking for.
Have also posted, HERE, that I have traded SFMI, and, have made numerous (correct, successful) chart calls while trading it over the last few years ?
The sustained lack of performance here has puzzled me, given the relative simplicity of the first stage plan for picking up already mined ores and making money from them. Considering the market expectations for the metals, I'm interested in finding the "right" stocks to have and the right stocks to trade when the metals markets do take off. I'd considered SFMI as a high potential candidate, because of the quality of the properties. The lack of performance prompted me to begin a more in depth look, recently, which I was also perfectly clear about when I began the effort. My expectation in beginning the effort in DD here was that I'd find another undervalued situation suffering for market related reasons other than real fundamental shortcomings... which would allow me to accumulate large holdings before value was realized.
Using my other recent IHub DD efforts in mining shares to qualify my opinions on mining shares ? In October and November of last year, I called a bottom on SRSR at $0.008 after it passed my DD screens, and pretty fully laid out why I saw it as a value and a buy then, and still do. Also called a buy on CYLPF around $0.02 which I still see as a value and have as a buy, again. This year, I began the DD on HMIT and waved a BS flag on HMIT around $0.015... and haven't changed my opinion of it, yet, although it seems there is "potential" they will address fixing what is broken, there. I'll change my opinion when I see the changes and see they matter.
Where does SFMI fit in that pack ? It doesn't. SRSR has great quality assets, the value is well connected to the shares, and management knows what they are doing. HMIT had assets of questionable but marginal quality at best, with questionable attachments of the values even to the management position, much less attachment to the shares, and management seems less than capable.
What I've found here is exactly what I've posted... and, as is my way, I DO post exactly what I do find, good or bad, and precisely what I do think about what I find. I'm rarely wrong about the issues I find and identify as risks to consider and weigh properly in doing the DD.
I'm not wrong about what I see in the structure here... or about what that suggests of management purpose. Hopefully, they will respond to constructive criticism from the investment community and fix it. That doesn't mean my opinion on the fundamentals they have imposed will change market reality and require fundamentals to control share prices rather than market factors. Price is always a market issue. I don't expect SFMI will trade differently because I don't think it is an investable opportunity even though it could and should be.
When I make a call based on having done the DD, it doesn't mean I'm posturing that I'm right all the time on every detail... but, right or wrong, it does make me honest about what I have as a judgment. Prove me wrong and I'll be happy to admit I was wrong. Change the reality and I'll change what I say about what the reality is. I'm not here because I'm bashing and shorting the stock rather than doing exactly what I say I am... doing DD and trying to qualify a stock I;ve been trading to upgrade it from a trading vehicle to an investment candidate.
SFMI looks like it is a trader... not a place to park your money.
My interest in making the effort in doing DD on those I do bother to make the effort with is an interest in finding those few that are potential HUGE WINNERS, where there are some obvious disconnects between genuinely positive fundamentals and the share price reflecting error in the market judgment, or market dynamics rather than fundamental values. I'm looking for companies that can and are likely to succeed, where you can put a check in the box for every element you need to have to be able to expect success will occur. I'm not here doing DD looking for trading opportunities... and as I said, I've used SFMI for that without doing the DD.
SFMI has failed my basic DD effort at an early stage... which is disappointing, as THERE IS NO REASON for this to NOT BE one that should be quite easily able to make the potential HUGE WINNERS list... other than how it structured and how it is being managed. There is no reason in the quality of assets that it should not be a winner. There are MULTIPLE reasons postured in the structure that you should be extremely wary of...
Three basic tiers of DD
1. Assets are real, have the necessary quality
2. Assets will remain attached to a share
3. Management skill and ability, and intent, to succeed.
Here, the first is solid as a check in the box, if not a slam dunk. The second is a show stopper, and it informs you re the intent element of the third.
They are TELLING you they have built a multi-layered structure planned to skim off the profit potential even before starting... and when a management tells you they intend to take the real value off the top for themselves, that is one management pronouncement that you can generally trust any management will do all they can to follow through with.
Not just short attention span theater here, I guess... given the lack of even a basic effort in research on what I HAVE said. That shows, too, in posts that make it obvious you haven't even really looked at what I HAVE said before trying to put the words you want in my mouth ?
You want me to post a different opinion ? I'd like that too, and I WILL post a different opinion when I actually have one.
Bending over backwards trying to convince me to ignore the OBVIOUS problems structured here ? Distract from the problems by feigning ignorance while attacking me ? LOL!
If they want my $ or support... they will fix the problems with the issues I've identified as obstacles to considering this as an investment candidate.
BASIC DD Q&A
Q: What do you know about the smelter contract ?
A: Not enough.
how about if I were to write you a check for $1000 I owe you, but require you take it to a check cashing business that I specify to cash it ? They have a sign up front saying there is a fee for cashing a check, but they don't say what the fee IS. Do you CARE what the fee IS, or who gets the benefit from paying the fee when you cash the check ?
AI
.JPG)
