Here's the link to the PR ...
Shorty has predicted multiple times this will spell disaster for the company. But then again, you have to look at the source of the comment.
So bashers, knock yourselves out!
I don't believe that the Reids are engaged in any kind of a Ponzi scheme as they have only sold 6% of their stock holdings to date
Well, they are getting something for their holdings that they haven't sold. The dividend. An indirect way of raiding the treasury...also their huge salaries.
There are a couple of concepts related both to the KS and Engy observations. Both have to do with the Reids being less then forthright. KS believes that the Resource is lacking and Mgmt is pulling a fast one. However, KS will only acknowledge 1.5 mil ounces which is the projected 43-101 INITIAL target. His conclusion is that there is nothing more there. Engy observes the lack of drilling/exploration. His questions are valid,imho and deserve to be asked on the conference call. I don't believe that the Reids are engaged in any kind of a Ponzi scheme as they have only sold 6% of their stock holdings to date. Three seperate "teams" of outside geologists have investgated the main deposit and verified it.
So Bengy, you got me on the El Rey year-end thing and you've found that the company has "only" spent a few million on exploration in 2011.
But you are still parsing irrelevancies and totally disregarding that the company is actually pulling lots of precious metal out of the ground on a favorable cost basis. How do you explain around those facts? Stop getting caught up on trivial minutiae and start addressing the fundamentals.
OK, I'm wrong about Amadeus' year. I don't know why anyone would have thought anything more than test ore would come out of Rey in 2011.
Regarding "all the info coming from management", the one piece that I have not heard form management is Rey production in 2011.
By the way, a point of interest...in reviewing the MD&A (Management Discussion and Analysis) in each of the quarterly and annual filings going back to the first day of production on 7/01/2010 (actually going back to 2009), their is some interesting use of language.
Management uses the term "ramp up" freely in each and every quarterly and annual filing within the period except ONE......The term is glaringly absent from the latest filing, Q3 2011.
<<BTW, Engy, while you're pi**ing around with SEC reports and coming up with nothing but negative conclusions, I and many of us longs here have been making fistfuls of money.>>
Believe it or not, Amadeus, I am actually happy for everyone who is making money on the long side. It is "found" money.
As I have said in the past, I feel the discussion flows best when I don't discuss stock price movements, only fundamentals.
Good investing to you, Amadeus.
BTW, Engy, while you're pi**ing around with SEC reports and coming up with nothing but negative conclusions, I and many of us longs here have been making fistfuls of money.<<
People yawned at the analysts that were asking questions about Enron's red flags. As long as Enron's stock continued to climb people didn't care. Too many people think that the market is right.
how is it possible that not one long knew that a 20% shortfall was coming? why did someone short get it right and not the longs? we all know 3rd grade math, so whats going on here? because when a stock is going up, people will believe anything. mountain of evidence showing that goro is an inflated pig, yet 0 concern. this is the perfect short, imo. it is virtually risk free.