MOMO'S BREAKOUT BOARD

[bullmarkethobo2000]

General, re CWRN DD Pertinent comments - replies are interleaved below.

The short story is: seasoned mining engineer & crew of 3 pros are about to start a 30-year income stream of $200M/yr.
PPS today is in the ballpark of 1/10th - 1/20th of true value (thank you, bashers & shorts), using P/E of 10 w/ profit margin of 40% (50=truer), and without considering 60% buyback or reserves of 3 other tracts under agreement. Target some time in 2011 - July? - after 60% reduction in O/S: .82 - $1.00.

Some quick URLs -
Dec. 30 PR - nice status report (they accomplished a lot in short time!!) w/ pretty specific forward-looking stmts: http://www.marketwire.com/press-release/CWRN-3200000000-Projected-1st-Quarter-2011-Revenues-1374348.htm

C&W website geological data: http://www.cottonwestern.com/pdf/BAJA-GEOLOGICAL-SUMMARY.pdf

Nov. 9 valuation post is still p.d. accurate & reasonable, but off a bit here & there, esp. using $152/tonne vs. today's $184:
http://investorshub.advfn.com/boards/read_msg.aspx?message_id=56464891

Encyclopedic DD Compilation: http://investorshub.advfn.com/boards/read_msg.aspx?message_id=57917253
incl. MANY photo links & basher answers/put-downs.

1/19 recent photos + update (trucking starts soon):
http://investorshub.advfn.com/boards/read_msg.aspx?message_id=58932212

Quote: seeing the money actually being spent on equipment gives everyone a vote of confidence that they arent taking the money and running.

There a several posts with pictures of equipmt, people (3 of the 4 professionals, incl the Project Engineer/foreman),
a test drilling bore hole, a restaurant pic of Bob Cotton & the Mexican subsid'y president - an indispensible & well-educated lady who's also his wife, and machines esp. the 12/24 last-delivered fine magnetic separator.

Reportedly 1st income is tagged to, among other things, pay back the investor who fronted for the 26 machines - ballpark $5M? more?

Quote:I dont have much experience at all with mining stocks except for the handful that ive seen come through ihub over the years, of which never were successful.
I understand what you mean about the whole sector being dimmed, and i think thats something thats been going on with mining stocks since the 19th century..but this one seems different. idk!

Well DD has been done by several guys - jackg{some #} months back, i.t.m.d., microcaps1, pesquero (pequero?), temeku, others . .

POSSIBLE WEAK SPOTS in DD:
- Trust Bob Cotton - my conversations/ PMs / emails w/ various threads of inquiry ended up with "I find him trustworthy."
surebob says no way, but we have yet to hear the other side of his story [jilted former employee/co-worker]. Several folks clearly have visited the mine &/or talked repeatedly w/ Bob C. & all find him distinctly trustworthy & upright.
His foreman - bullit69 - has made a few dozen posts and his testimonials sound believable. One allows as how Bob's goal is to make whole his early investors at $1.69 / share. I find the sum of info on Bob C. distinctly reasonable - but without a few more kinds of transparency it's an open concern.

- LLC in Nevada holds shares of the corp - Moderator (note: she's a basher, BION) considers this a skimming mechanism "shareholders will never see a dime of profit . . just like LLCs used in Hollywood." My reaction: gimme a break, Lady.

- Proven reserves? - mining techno-data exists on www.cottonwestern.com, but an "official" Canadian-type report may be lacking. Current data at website reportedly show 40.5 million metric tons (tonnes) of reserves - enough for 33 yrs. at the PR'd production rate.

- Financial reporting: over a year old on OtcMarkets - is promised for Q1 in April

Quote:also I didnt know that the company was planning a 60% share buy back? this to ive heard a lot from companies, where can i read more about that?

See Nov. 22 PR - http://investorshub.advfn.com/boards/read_msg.aspx?message_id=59078684&txt2find=buyback
What's interesting is: 1.9B of 2.xB shares are restricted, not traded, held by Bob & Ms. Vasquez[p-Cotton].
These WILL NOT BE BOUGHT BACK - THEY'll BE SIMPLY RETIRED.
Size of float unknown but guesstimated at 400-600M, or more, unlikely less, so 60% fewer O/S should be somewhat under 1B.

Buyback was planned for "end of Feb.", but i.t.m.d. a month ago said something like "not quite then."
That's the plan . . . it knocks off ~80% of buyback-all cost - we'll see if it happens that way. If it does: big kudos to Mr. Cotton for treating shareholders well.
I expect it will happen - they need to get to $1/share & don't like R/S.
I hope that the investment "pros" that they talk to don't take them down a poor path.

- Iron ore prices will collapse. Well, not this year - they'll be building a war chest to expand & weather downturns. Also: C&W has a very low-cost operation on many fronts - minimal infrastructure cost vs. some iron mining efforts in hinterland of Brazil or deep freeze/high labor cost of Canada. See a WSJournal article last week about one of these.

MILESTONES coming up (don't sell too soon!) :
Trucking, any day now.
"Depot" / bunker pile filling up at Ensenada
Barges being loaded via conveyor - 3 trips @ 35 mt ea. to fill 105 mt. Handymax ship
$19M payday.
2-3 weeks to next ship departure.
Share Buyback/retirement: March
Financial reporting: w/ Q1 results, April.
Q2 results: more revenue, July.
Also needed anytime now: Nevada Annual filing, PinkSheets update to remove Caveat Emptor/ no-data status.
Up-listing to Nasdaq or perhaps OTCBB, OTCQX: any ideas, post 'em to CW board.

$38M not $32M - as PR'd 12/30 - by end of March :
3 shiploads planned @ 152/m.t. but now sold @ $184, 2 will do it:
105,000 m.t. * $184 = $19.320M, * 2 shiploads = $38.640M
Profit margin may be 60+%, but at 50%: $19.320M to payback machinery loan, $1.8M personal loan by Bob C., and begin share buyback.
Trucking cost must be substantial, but well within bounds. 55 miles each way.