THE ULTIMATE CREATION OF A CLEAN SHELL. For shareholders and investors, it is known as “getting killed”; or historically the old, “Churn and Burn”. An all too common a practice on the TSX.V and other exchanges, which we suspect costs the investing public millions of dollars due to value depreciation, value elimination, rollbacks and all those other nasty little things you may have heard about.
Our advice to all – if you are going to play the game, get to know the game. The reinvention of companies that have crashed and burned is one of the niches within the Junior Mining space. There are things you can look for that will provide you with some advance notice that a restructuring and clean-up is likely on the horizon and we share these with our Members inside JuniorMining.com. In one of our Member Only articles we explained at length how excessive dilution and rollbacks spell doom for the investing public. As we explained it is not an illegal practice or occupation. We provided a very lengthy explanation and example how one day you can own thousands of dollars’ worth of millions of shares of a listed Junior Mining entity and in a not so short time period, through dilution and a few rollbacks that particular investment of yours may not even buy you a coffee at Starbucks.
JuniorMining.com is about to take the exercise in the earlier article a step further and provide some primetime live examples of how the perfect, clean shell is created from a once news worthy, money raising, diamond drilling and flourishing TSX.V listed and operating company.
In the story we will explain why we draw a parallel between those companies being demoted to the NEX and wrecked autos being towed off to the wreckers to be dismantled for parts for the revitalization of another.
One of the companies we will be utilizing is Coronet Metals Inc. which is listed under the symbol “CRF”. Go into your Canada Stockwatch account or another favorite location and read all the news releases by “CRF”, look at the charts and prepare yourself for the next big lesson. You may notice that taking into account rollbacks how the share price descended from a factored price of $16.20 per share down to its recent $0.035. The assets are moved out, significant payables accrue as debt, how the debt is then transformed through the use of debt settlements into large share positions for certain persons, and the bow is placed on top and the package marketed to a whole herd of investors. The lesson to be learned from the “CRF” story is irreplaceable. Are you scratching your head and wondering what happened to the existing shareholders who may have been hanging in there for the last few years wishing for something better? Tragically they were wiped right out!
Stay tuned, as learning how this all works could either save you a lot of dough, or make you a lot of dough, depending on what you do with the new knowledge. The key here is understanding how the business works from the inside so that you can capitalize from the outside. If for some reason you aren’t already a Member of JuniorMining.com – it is now your move. Go to www.juniormining.com