Replies to post #99730 on Liberty Star Uranium and Metals Corp (LBSR)

[kickedoffagain]

"private placement is just another form of dilution bargain selling, ultimately chopping legs out from under common folks"

So why don't you enlighten us, with your no-doubt encyclopedic knowledge of business finance and capital markets, how the Co. ought to be going about obtaining the Oh-So-Common "Something For Nothing".

Maybe you can fill us in before the other Penny StockMastermind who is going to (not) substantiate the 'Kickback' arrangement assertion on the Warehouse lease.

[jtyler]

The question.

Crystalballz Member Profile Crystalballz

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Friday, June 29, 2012 1:39:47 PM
Re: CEMJQ Multi-Millionaire post# 98183
Post # of 99729
why would the ceo try to talk to every shareholder in america one-on-one? Maybe to convince the stakers that he may need raise A/S and dilute to keep things going? Who wants to repay a 10M loan when all you have to do is a "whirlwind" tour, with a finance note saying... "see, they believe me, you should too"

If its truly great then DO IT lbsr, stop the talking time & touring the country side like your michael jackson



just my opinion

The Answer.

What About Promotion?

Question 7: "Who else will you tell this story to, how will you tell them, and when?"

Promotion often makes the difference between success and failure. Promotion is crucial in capital intensive businesses because it raises subsequent financing with less dilution and increasing liquidity and share prices. Since exploration companies seldom pass out gold watches to thirty-year shareholders, you want increasing share prices.

Make the company (preferably its promoter) detail its promotional plan. Who is the audience? What is the message? Who is the messenger? Do the three mix? What is the promotional budget? Is that sufficient? How will the promoter raise additional capital? At what price and from whom?

Companies must budge at least $150,000 annually for promotion. Sad, but true. At least two management road shows through Melbourne, New York, and London should be scheduled annually and one yearly tour of the company’s focus properties for analysts.

Institutional investors finance exploration but retail investors worldwide provide market liquidity. Promoting to only one constituency is a flawed strategy. Promoting to retail investors should take into account their large numbers. Will a company spend its promotion budget in a market where retail investors have money?

Make sure the promoter knows and complies with federal and state laws. If the promoters are not aware of these regulations and don’t have concrete plans for complying, forget about their stocks.

Where Can it Go Wrong?

Question 8: "What can go wrong, how can I know what is going wrong, and what will you do if it goes wrong?"

If a company management can’t name at leastthree things that could go wrong, they haven’t thought through their enterprise. Make them describe the three worst fears for you as a minority shareholder.

Make the promoter describe specifically how you as a shareholder will get negative information and warnings. Ask what telltale signs you should look for and how you will get information (from the promoter, by fax or e-mail is the best answer) to help you assess these risks day-by-day.

Who is Your Promoter?

Question 9: "Who’s buying the beer?"

If a company has answered these questions in reasonably good form, get to know the promoter personally. No company will answer every question perfectly, but candor and reasonable responses will tell you who to spend more time with. As you build a bond with the promoter, get him to tell you the real story. Because your interrogation took control of the promoter’s spiel, you have helped him order his thoughts about the company. Now let him lapse into "stream of consciousness," and listen carefully for tidbits of information you would never get from his canned spiel.