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farwest

03/29/08 11:43 PM

#8591 RE: cl001 #8569

Re:SAM - you had no idea that management were sandbagging the market and nobody is blaming anyone except management for not disclosing material events. For that failure, they go to the bottom of the heap in my opinion.

Everyone should expect screw ups in juniors - they don't have the best deposits, people or funding and little things have a nasty habit of growing into large problems. But when management fails to inform the market of significant problems, that's a big red flag. And in SAM's case, they seemed to go out of their way to present an entirely false outlook for the company with obsolete Investor Presentations and grossly misleading information coming from their IR department.

Add in the outrageous "incentive" option policy and it's clear SAM's management interests are not aligned with shareholders.

If I still owned shares, I'd probably hold as well. But I'd expect Q1 to be horrendous and Q2 not much better. It's never good when you see declining grades and production quarter after quarter, so I'd be prepared for continuing bad news and potential failures to meet guidance.

SAM is a "show me" stock now and they don't deserve any credibility until proven otherwise.