First of all I'll answer the quesitons about me, I'm a business owner and private investor who has always invested in metals as a hedge on my stock portfolio. Yes, it looks suspicious when someone registers then immediately starts posting negative opinions on a forum. I am not usually a "Forum" type of guy, and I stumbled across this one last night when I was doing some online searches on CMI.
I live in Reno, NV, just about 30 miles from CMI's operations, and for many years I lived in the Comstock, and had a small mining claim there. I have always loved the idea of mining in the Comstock, and it's been my life's dream to be part of it. I come from a mining family, my brother is the 4th generation in mining, I never did it for a living.
That said, I have invested in good mining operations and bad ones. When I bought into CMI I believed it was going to be one of the good ones, but the more I learn, the more I watch Corrado and the way he skirts the questions, and fabricates stories, well it made me sell my shares this morning.
If you don't live in this area you don't have the advantage of watching his public behavior. I have to say, he is the most charismatic guy I have ever met, he SELLS his company! That's what made me buy the stock in the first place. But the more I see, and the more I learn by attending County meetings and functions where Corrado is a guest speaker (of which there are many!) the less I am convinced.
I'm not slamming anyone who buys into CMI, I did!, I've just decided that it all doesn't add up, and when I started reading this forum I thought it was interesting that people post thier doubts or concerns and then are immediately talked out of believing them by the others in the community, which is, I guess, the way these forums work.
My opinion isn't the only one out there, and I don't even know if it's the right one.
All I know is I have learned to look at as much evidence as possible to make decisions, because every time I invest with my heart rather than my head, it cost me money! bad instincts I guess.
I agree the BLM and Governments aren't going to shut down CMI, there is no desire, nor legal standing for that. The BLM has ordered CMI to comply with Federal law, which is why they are no longer hauling on Federal lands, that's not a vendetta, it's a legal requirement that's being enforced.
What I believe the Court will do is stop CMI from hauling ore in a manner that violates thier Special Use Permit (if you request a copy of thier SUP you'll see it specifically prohibits the use of public roads for haluing ore). Courts don't usually take sides, and there is a clear case that they are violating the law. So where does that leave CMI? if the court orders an injunction, which is a reasonable request of the plaintiffs, it means CMI has no way to haul ore until the BLM grants thier permit to cross Federal land. The Director of the Sierra Front office of the BLM says that will take a minimum of six months from the time all of the requirements have been met by CMI. I believe Corrado stated in the call yesterday that all of those requirements have been met, although that wasn't very clear and I could be mistaken. But let's say they are, and it only takes 6 months for the BLM to decide, and they decide to grant access, that's an awful lot of "ifs" but it could be that CMI has access to Federal lands on May 1st. If the judge decides to order an injunction on December 1st (I'm pulling these dates out of my a**) that could mean 5 months of not hauling ore. That's not 5 months of no production, that's only 5 months of not hauling ore.
If the company came out and said that was the case, "but here's what we are doing" I would be more inclined to believe them. But the way they dodge the issues and gloss over what is really happening in the community is a pattern I've learned from in the past.
I'm not saying you shouldn't hold onto your CMI stock, I'm only stating why I got out. I don't regret buying it, but I do regret not selling at 3.25! and I believe if I continued to hold it I would regret that decision within a year.
I believe my money is in better hands with companies that tell thier investors the truth, and that's why I posted, I don't think the evidence shows CMI is doing that. Take it for what it's worth.
