Loading ...Bad Drill Results and Pump and Dumps
As stupid as this may sound, Im interested in creating a StockCharts file titled (Bad Drill Results and Pump and Dumps) I would appreciate the names of any company’s that have reported what would be considered to be less than desirable drill results within the last 6 to 9 months or so. Im also interested in any feedback regarding what was or may currently be considered to be a (pump and dump) play. All feed back and experiences will be greatly appreciated.
What a wonderful project! However I’m not sure I can help too much.
I do recommend
http://incakolanews.blogspot.ca/ (IKN)
and
http://angrygeologist.blogspot.pe/
for giving something of what you want. The trouble with the latter for your purposes is that The Angry Geologist (TAG) tends to go into too much detail about geology, metallurgy, &c for your purposes probably. (For that matter I’m not qualified to know how correct he is.) Also, he will discuss projects that aren’t pure pump/dump but ones that are maybe a bit overhyped, so not what you’re looking for. For example, he might criticize a company that may have a good property but (in his opinion) will plan drill holes that knows will give good results for news releases (re-drilling more or less the same stuff unnecessarily) rather than drill holes that expand knowledge of the ore body.
“Otto” the proprietor of IKN, and clearly a pal of TAG, spends a lot of time tearing into various companies and their managements. The odd thing is however that at least in the past in his subscription service (which is a whole lot different from his blog–a lot more sedate, a lot of number crunching) he has recommended, and himself at least transiently has owned companies whose managements have come under at least some harsh criticism on his blog. I actually have a list of companies that he has criticized on his blog–they range from pure pump/dump to ones that he has recommended transiently to subscribers for their fundamentals if not for the purity of their managements. Maybe my version 2.0 of this list will differentiate the P/Dumps from the better ones that he criticizes, but it’s not good enough to give you now. You can go through his website and look up past postings though. He is opinionated but obviously has his informed sources. Also, as a subscriber I have the strong sense that he studies financial statements rather more carefully than most and is in fact cautious in drawing conclusions about companies’ viability. Others’ opinions may vary. Those are mine.
So those are two sources. Fascinating idea. Personally I’d be a teensy weensy bit worried about litigation risk under some circumstances, but you I think would word things prudently and cautiously.
Thanks for the feed back Karl! Your example of holes getting re punched in an area thats already been confirmed just to make the next drill result look good is exactly the kind of thing I looking to sharpen my awareness on. I have been a Federal disaster contractor since 2008 and have seen scams for profit that would spin the heads off most peoples necks. One in particular generated a nice fat bill to US tax payers for 960 million. Its taken my entire 8 years in my industry to comprehend the magnitude of the corruption and deception that that lives and breaths in the industry. “The illusion of legitimacy can be way more powerful than legitimacy it self.” Ive seen it in nearly every industry Ive ever been in. I had an old friend who was the county forester most his life. He once showed me a small note book after he retired that listed 140 something different scams he caught loggers pulling on land owners during his career. Unfortunately, experience is something we dont get until way after we needed it. Knowing that this industry isn’t any different confirms the necessity for the kind of extensive research we get from a guy like Spock. It really comes down to the caliber of the people and thats not an easy thing for most of us to determine with limited time and experience. Its a shark tank and the teeth are sharp.
pump and dumps are usually the paid reports put out. If ya good then you don’t need to pump. ikn will help you out. you can ride the pump although.
Thanks Highroller for the advertising perspective! Riding the pump reminds me of the old saying “you can deal with a thief and his deception so long as you know that your dealing with a thief and his deception.”
Wow…optional…Great thread…and your insight into your industry is an eye opener too
Thanks my friend
Caveat Emptor…buyer beware. This applies to everything, including the small cap PM sector.
I any industry, you will find the sales promoters. They are really only interested in one thing. And that is not the buyer. Think of it as a mini ponzi scheme, where the early birds get the worm (buy early), and those late to the table, are the bag holders. Though in a bull market, the bag holders generally get rescued. In a bear market, they get slaughtered.
The first thing to look for is who is the promoter and are they conflicted. Are they at arms length. If not, Caveat Emptor applies.
This is basics 101, and anyone who falls for this stuff, is not “street smart”. After they lose money, they may begin to wake up, but many never do. These are the suckers, and there are a lot out there.
One has to do their own due diligence, at arms length from a conflicted promoter, who is just after a quick commission. After doingt eh DD, the skeletons in the cupboard should be obvious. Then walk away.
Personally, if a I get a stock promoters email, I delete it straight away. Many of the public blog sites come under the same category, so I avoid them. Except Goldtent of course!
I have learned to be at least as skeptical of pay websites (and newsletters) as free websites. I do not of course refer to the Spock metals matrix one, to which I was happy to renew my subscription yet again about a week ago (1st anniversary).
At the pay sites they can rip you off coming and going: with the subscription fee and with the heavily conflicted recommendations of pump/dump in which they make money (perhaps consciously, perhaps oblivious to what they are doing). Or they can be just plain be incompetent other than with some skills at writing and marketing, possibly sincere or not. Not necessarily a matter of getting what you pay for. Sometimes yes, sometimes no. I’ve been around a bit, partly as a subscriber but more as someone who has studied the advertising materials and then seen what has come of the operations and their recommendations.
One ultimately does one’s own work.