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Jaguar Mining Inc. Message Board

  • aviantruth aviantruth Feb 16, 2011 6:07 AM Flag

    Why JAG noteholders & shareholders are both SCREWED


    Although it appears as though relentlessly inept JAG management works entirely on behalf of noteholders at the expense of the long suffering masochistic shareholders, with that equity trading some SIXTY SIX percent BELOW all time highs while gold trades near an all time high, I can safely state that both classes of investors are thoroughly and equally screwed.


    Because when a lousy management DESTROYS its credibility the way JAG incompetent execs have done, via several quarters of missed production and cost estimates, then their complete inability to keep their promises undermines ALL aspects of their credibility.

    That means that every single aspect of the company is thrown into doubt....everything from estimated reserves to estimated mine life to any and all assessments of asset valuations.

    What that means is that any potential aquisitor company would NEVER NEVER NEVER trust a single stat released by this company and that means there will NEVER be any kind of takeover offer for JAG, NOT today, NOT tomorrow, NOT ever, and it matters not whether noteholders take over the company someday or whether shareholders remain in control.....and it matters not whether JAG trades for 1.00 or 10.00....there will be NO bids for this company because any acquisitor would likely face massive shareholder litigation if JAG were ever purchased and it did NOT turn out to be anything like JAG management represents it to be.

    I saw the same thing happen to one other gold miner.....the noteholders took over the company after the equity was destroyed, and they reaped a big fat ZERO since NO acquisitor of any kind would step forward and bid for the company, at any price. THAT is the inevitable result of any company that allows its exec lamebrains to destroy and undermine its credibility at every single turn.....a total absence of trust about every representation of any and all aspects of the company.

    If the noteholders are behind the relentless assault on JAG equity, they can expect a very negative result for their own expected fortunes because you cannot destroy a corporation's credibility, then expect anybody to trust its "alleged value" thereafter.

    As for yesterday's performance, it was another PATHETIC DEADCAT BOUNCE, a mere 4% gain in a stock that has COLLASPSED almost 70% from all time highs, and any shareholder who is not FURIOUS about how management has screwed this company is simply brain dead.

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