Replies to post #12965 on Value Microcaps Junior Miners

[Lone Clone]

I agree with most of what you said about silver, except that more than half the demand for silver is industrial, and industrial demand will remain low for some time. However, if gold gets even more expensive, its status as the poor man's gold may come into play and offset this is at least in part.

LC

[daredguy]

Burn the Silver Share Shorts -
Check Out CDE Fundamentals

And an Open Letter to Nancy Pelosi –
Speaker of the US House of Representatives
by James Anderson | February 17, 2009
Silver Investors, especially those in Silver Equities have been put to a severe test over the past 8mths. It was bad enough that the Silver bullion price was cut over 50% from US$19 in July ’08 to $9 in Nov. Silver shares started falling a lot earlier than physical from March/April ’08 & fell right out of bed losing up to 94% of their value.—and that’s just the BIG already established Companies ! A lot of smaller Co’s have been wiped out & will not recover.
There is no doubt in my mind that the above was no accident. It was in my opinion engineered by greedy, unscrupulous Wall St criminals who are allowed to do so by corrupt & negligent regulators. Those already interested & involved with owning Precious Metals are well aware of the ongoing & continuous manipulation & intervention by TPTB. It is a subject that has been well covered & we expect that the manipulators will be overwhelmed at some time & hopefully sooner than later J

SHORT SELLING (without the “Up-Tick” rule) is the mechanism used to rape & plunder

(Naked Short selling is another issue -well covered by Financial Sense & others . It is still an unresolved issue)

Many of us are victims of US short selling. Short sellers have targeted the Co I am invested in even though the Co has working assets (Mines) , appears to be well funded & has assets that have appreciated significantly since the melt down on World Share Markets in Oct 2008. This has caused me to doubt there is anyone responsible in the US Govt for Financial Management . As an Australian citizen I find it incomprehensible that such lax financial oversight could be allowed to happen in the so called World's most "advanced country" -and for so long! Many thousands are in a similar position having lost on paper a huge part of their former Share investment for no good, explainable reason except that Greed & Corruption runs rampant in the US Share Markets despite “supposed” increased scrutiny since the meltdown last year. It would appear to be a fact of life that the US Regulators are beholden to & in cahoots with the criminal side of Wall Street. Otherwise why have immediate changes not been made to the Short Selling Rules?

Shorting is done by Institutions & not always just by Hedge Funds. Shorting is always better if you hunt in packs. Collusion between shorting Fund Managers pays although no one will admit it & no one will be able to prove that it goes on! Targets for shorting are shares in which you can generate fear. When you factor in the huge whack that Silver received last year (US$19 down to $9) it would appear that was the first step –now followed up by unrelenting shorting. it's likely that the Criminals have been given the perfect victims –the large & liquid Silver Co's who have exposure to debt because of funding for new mines etc. Analysts & Rating agencies jump on the “band wagon” to help their “mates”. It’s a bad situation to be in for any Co –but the Shorts can be beaten. The following is essential for a fair market.

THE UP-TICK RULE

In Australia & other "advanced" countries the "up-tick Rule" applies to all shorting -whether deemed to be a "Financial Stock or not". The “up-tick rule” or “tick test” required short sellers to sell at a price above the last price paid for a stock, or at the price of the stock’s last trade if it was higher than the previous price. The rule had been in effect since 1938, but the SEC removed the rule last year, on July 6, 2007, after saying it was “obsolete" thus giving short traders a free reign on shorting without any real mechanism to mitigate.

Nov 18th 2008 - -Wall St Journal -- "There's a Better Way to Prevent 'Bear Raids" - The SEC should restore the up-tick rule http://online.wsj.com/article/SB1226... --

Snip:

The SEC was warned by two commentators not to repeal the up-tick rule since it limited "bear raids" -- when short sellers drive down a stock's price in the hopes of scaring other investors into dumping the stock or triggering margin calls to force liquidations. In response, the agency approvingly summarized the views of three other commentators -- that bear raids "are highly unlikely to occur in today's markets, which are characterized by much smaller spreads, higher liquidity, and greater transparency than when the rule was adopted 70 years ago." This summary did not take into account another factor -- the advent of over $1 trillion managed by hedge funds with the ability to short stocks.

In fact, after the repeal of the up-tick rule, there was a marked increase in the number of NYSE-listed stocks with price drops of over 40% in a day -- a rough proxy for a bear raid. In the 12 months following Sept. 30, 2007, the number of such huge drops doubled as compared to a prior period with similar market declines and high volatility -- the 12 months following March 31, 2000.

The passage of the Economic Stabilization Act of 2008 has not stopped bear raids, so the SEC is reviewing its tool kit on short selling. Instead of another blunt tool like a temporary ban, the SEC should promptly bring back the up-tick rule

Nothing so far has happened -- allowing the criminal element to rape & pillage as usual.

Of the major Silver Co’s the 3 most shorted are Silver Standard Resources Inc (SSRI) 7% of Shares, Hecla Mining Company (HL) 13.9% of Shares & Coeur dAlene Mines Corp (CDE) a massive 14.85% or 76.4 million shares! It is mind boggling & patently reeks of collusion. All of these Companies are invested in an asset that has appreciated substantially over the past few months. Silver has risen over 30% ( Oct 24th '08 to Feb 11th 09)

CDE - - Worth looking at for the fundamentals if you believe in a higher Silver Price.

Despite being "well funded" CDE was driven down to a low of .36cents on Nov 20th .The price then gradually recovered to .98cents on Jan 8th when physical Silver was at US$ 10.88 per oz. Silver is now at US$13.40 on Feb 11th ’09 and CDE has been driven down again by Shorting to the unrealistic price of $.68cents !

*So the facts are that after an increase of 18.81% in the price of Silver CDE drops over 30% in Value!

This is plainly ridiculous but small & even large investor are held captive by these criminals.,with NO HELP from the regulatory authorities. Check out CDE "assets" for yourself. Management may be lacking in entrepreneurial ideas BUT they still have a very impressive list of assets not at all factored in by most PM investors. Do your own due diligence & see what value lies here in a very manipulated share price.

(CDE) http://www.coeur.com/ . From their Website is the following brief facts:

Snip: Couer d'Alene Mines Cororation is one of the World's leading Silver companies and also a significant gold producer. Coeur, which has no silver production hedged, expects to produce over 20 million ounces in 2009, a 66% increase over 2008 levels. Last year, we began production at what is expected to be the world’s largest pure silver mine - San Bartolomé in Bolivia – and we are also currently constructing another world-leading silver/gold mine – Palmarejo in Mexico, which is expected to begin production this March. Coeur also owns and operates underground mines in southern Chile and Argentina and one surface mine in Nevada; and owns non-operating interests in two low-cost mines in Australia. We own a major gold project - Kensington in Alaska - and conduct exploration activities in Argentina, Chile and Mexico.

Coeur’s cash costs have remained below $5 per ounce (adjusted for gold byproduct), as silver prices have fluctuated from $9 to $17 per ounce over the last 2 years. Its Palmarejo project has the potential to substantially reduce those cash costs. In late 2008, Coeur cut its corporate G&A costs by 40%.

Back to the Shorting of CDE by criminal elements of the USA Financial Mafia.

I have seen my own "Investment" in this USA Co go from $US5.16 (March3rd 08) to $US$.36cents! on Nov 20th 2008. I have a very large holding & elected NOT to sell on the way down. In my wildest nightmare I could not have imagined this Operating Co with 5 mines being manipulated to the depths it has been. I am still holding over half a million shares because I don’t believe the current price is anything other than a false price. I urge you to put prejudice aside & look closely at CDE for the inherent value I believe is there.

If CDE does not appeal for what ever reason please buy one of the other major shorted Silver Stocks. We can win this with or without the regulators. Don’t hold your breath waiting for “them” to fix things.

James Anderson

Australia

Contact - [e-mail]

[Xplosivestocks]

Bodes well for mergers

http://news.goldseek.com/GoldSeek/1231519836.php