Replies to post #97232 on Pacific Gold Corp fka PCFG

[Star Gazer]

Kurupt,

Thanks for the PM's but I'm too cheap to subscribe.

I agree completely with your theory and that is what I was trying to get across in my post of yesterday.

It's my guess that this is some kind of sick hedge play that the shorts have on the Jr. Miners. PCFG isn't the only one going through this right now from what I see of some of the other Jr. AU PROUDUCING companies that I follow. Some of the companies are trying to PR their way out of the "Take Down" and others have gone silent.

From what I can see, the MM's try to short the miner into the ground while having access in some way to convertible shares that they acquired at a steep discount. The convertibles give the crooks the option to either apply the coup de grace with a sudden flood of cheap stock or cover their short positions if they can't run it down below a certain threshold price. I don't know why they won't just let it run and sell into rise.

There was a link that I posted a couple days (96602) ago that outlined the Complaint against a trader, that was approaching startup's that needed capital, for convertible shares and turning around and selling them on to the open market with none of that pesky paperwork or forms filed.

But I do agree that there are players here manipulating these miners and I'll bet it comes back and bites them in the butt just like NITE got it with LIBOR. If it is NITE, I hope it puts them under.

There are some pretty astute and intelligent people on this board that have been documenting these shenanigans. I'm starting to wonder if we shouldn't start sending certified letters to the MM's Compliance Officers and cc FINRA outlining what their traders are up to. At least it would remove any "Plausible Deniability" in court.

As always, the preceding is just My Opinion

SG

[Kurupt]

This was an interesting PR that was put out a couple months back and got me attracted to PCFG:

Pilot Metals holds a purchase option on Project W from PCFG's subsidiary Pilot Mountain Resources until September 2013. Pilot Metals plans for 2012 include a drilling program, resource calculation, metallurgy study and a scoping study.

PCFG management believes that Project W results received by Pilot Metals, to date, have been equal to or exceeding historical reports prepared regarding Project W resources.

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Long Gold Miners/Short S&P 500 ETF Pairs Trade
August 31, 2012 | 10 comments | about: GDX, includes: GGGG, GLD, IAU, IVV, SH, SPY, VOO

Gold and Silver miners have for many months been trading at a healthy discount to the NAV of their reserves. Although the optionality provided by a long position in a miner should be worth something (since a rising gold price ought to create a disproportionate increase in the stock through operating leverage while if gold falls to unprofitable levels they can simply stop digging), the market continues to price the sector at a discount. One obvious move is to buy the Gold Miners ETF (GDX) and short gold itself (GLD). However, this means simply betting on a reversion to the mean of the relationship, and there's no knowing when that might happen.

Instead, long GDX and short S&P 500 is an interesting trade. Gold is out of favor and a short position isn't likely to provide much protection from here.


http://seekingalpha.com/article/840631-long-gold-miners-short-s-p-500-etf-pairs-trade

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