ECU Silver Mining Inc. (TSE:ECU)

[basserdan]

An interesting post by Coach247 @ Agoracom's ECU Silver Board

in response to Re: Cartel lid stretched over the metals today by MajorD

posted by coach247 on Jul 22, 11 11:53AM

Hi MajorD!

I agree with you that the strength of the rebound is the real story this week, not the recurring smackdowns that hammer the sector on the whim of criminals. No way the cartel is going to let gold or silver close above significant price levels this week, but the usual comex nonsense will be over with in a couple of sessions and then its game on.

For those that have concern about the performance of ECU I think it will come down to the drill results for the short term direction of the stock. My personal belief is that someone who may be short millions of shares would probably have a contact in place with the drilling contractor, and will get a phone call the minute any core is pulled that has visible alteration. The day we get massive volume and a price rise is the first sign that we are back on the discovery track for the company. Until then the mission appears to be about slamming a lid on the stock to demoralize retail investors as much as possible and make it easier to cover. So many people are willing to just hand over their ECU shares so cheaply it must be like taking candy from a baby to short this company. That is too bad but it is what it is.

The clock is ticking down for the merer vote. When that is approved I think the shorts MUST cover and any phantom shares outstanding will have to be delivered. When the tide goes out and ECU is taken off the board, I do not think brokerage houses will be willing to look the other way and admit they knew all along they had client accounts fully paid for ECU transactions that were never delivered. So regardless of whether we hit big drill results, in about 6 weeks the shorts are forced to act and the buying will probably carry ECU well above a buck prior to the closing of the merger. All of this other nonsense, low volume selling, weak sector action, and poor sentiment, will all be a dot on the horizon once the deal goes down.

Here is a hint: the wrts are trading higher today on above average volume. Remember a few weeks ago I was buying those wrts and some people were too busy complaining and getting their shorts in a knot about the short term price action. Retail players are usually crying and selling when they should be buying. Ask yourselves why someone would be bidding up to buy wrts now instead of the cheap shares? You think it may have something to do with the long-dated expiry and the leverage on them? You think maybe smart money is convinced the new company will trade much, much higher down the road?

Have a great weekend all...

mike

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