Doomsday movie and Mining stock blamers
19 July 2008
I watched this movie on video called Doomsday. It's about a quarantined and isolated part of England, where the citizens plunge into utter chaos because a viral infection is slowly killing most of them and the authorities have left. While some of them lived, the results after 30 years spawned a new race of barbaric savages, willing to kill and eat each other because there was no law.
In the presence of despair, there's chaos, rape, looting pillaging, destruction of public property. All because they think they can get away with it because no one is watching. The same can be said about the attitude of some people with the stock market, particularly unsavvy investors with the mining sector.
While I do not speak for any of these local mining companies that have yet to produce or deliver, some
people simply don't understand how things work and want instant results through their stock price appreciating.
In my article last june 21 of how low our stocks went based on their 52 week highs, Geo down 71%, MA down 63%, APX down 46% LC down 55% PA down 75%, and PX down only 15%.
Regular viewers can see in our forum that the people are most sour at GEO. Here are some of the things they want to hear and my opinion on the matter:
Some call it a fraud for producing no results even after a year.
Look at these class A mine sites MAnila mining and Benguet, they already know where the minerals are, and yet after two years, have they gotten around to any shipments? I have Nothing bad to say against the effort of these companies, but it's the point for new investors to digest that I'm trying to make, that operating mines aren't as easy as setting up a sari-sari store which you can do overnight. Let's call it a fraud like Bre-x mines was when they faked their test results many years back.
Even Apex has Crew Gold and Manila Mining has Anglo for foreign investment partnership and that's already a big boost, but neither has had any productions. Like I said, Mining is not easily done overnight. I will also not get into the semantics of mining, because I am not a miner.
Some wanted pictures of minesites just to see what's happening
A lot of good that will do. Look at minesite pictures of PAcifica, did that save their stock price from falling as of June 21 (that's when 52 week high study was made, and PA has since risen a little).
Then why is it falling? It's trash. It's worth nothing.
Good that that is your attitude now. It has always been trash and paper. Like all stocks for me are. Even blue chips. That is the same attitude of mine that I have been telling people when they invest in stocks. It is just a state of mind that TEL was worth 3000 pesos one day, and 200 pesos just a few years back. I doubt Metrobank and BPI halved their income and customer base, but their stock prices have plunged, not because of loss of value, but loss of faith and perception as stocks being bankable investments in this time of credit crunch and inflation.
Walang Laman yan, there's nothing but a fluff company
Everyone already knew that from the start, and yet why did the sourgrapers buy back then? Greed because the market was strong. Now Fear is ruling emotions because the market is weak. These two emotions are the only difference. Fear that has been brought about by the big bad bear. Nothing has changed with these mining companies in terms of revenue except for Philex.
Why did they promise this and that and had many expectations about the company?
There is nobody that will setup a company based on poor expectations. Feasibility studies will be made first before any business endeavor, so everybody is hopeful when they start a business.
When to call it quits? When is a company bankrupt?
Of course when they have no more money to fund their business or mining explorations, of which I know nothing about. That is when everyone can say it's over and nothing was achieved.
When I attended a GEO stockholder's meet early this year, there were a lot of pro and anti GEO finance manila forumers attending the event at AIM, and yet none of them asked these details on productions, etc. A lot were already antsy on the thread because their stock price were already falling at that time. I encouraged those with issues against the company to go directly to the meet to have their concerns addressed at the proper forum, but I guess when it's time to show their faces, their knees turn to rubber. It's sad that some people choose to attack cowardly, knowing that they are using anonymous names. If their intent is true, they should just draft formal letters and sign it with their real names, and send it to the mining companies concerned. They could also set up appointments with them directly.
To everyone who has learned, is learning, or who wants to learn about the pains of investing, this is it. You are already experiencing it in your losses as the bear rears its ugly head. The next time somebody tells you to buy because of technical analysis, fundamental analysis, or rumors, listen yet approach with eyes wide open and fingers cocked on your guns. Sure you can shoot your bullets, but if somebody is shooting back, do you just stay there or run away?
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The best definition of “risk” I encountered: is putting something that should be your responsibility, in the hands of others.
Why so much time and emotional effort spent on this passing thought?
its not a passing thought. its a recurring plague of blame in our forum. Every now and then people whine about failure of GEO to put up results, or repetition of LEPanto and MA’s yearly rights offering, or IPOs not moving up.
this article is to sum up recent grievances na paulit ulit, and yet nobody is using his real name to raise questions or blame to the proper companies involved.
i am getting tired of repeating myself over and over for some of the ignorant whines. this way, this article will be here and i can just copy paste the link.
everybody just has to wake up. no company has set up to make money for you, the investor. in fact, IPO’s primary purpose is to get money from you, the investing public, to recover costs of operation, retire debt, and expansion. Most certainly, no one has started up any company with the purpose of wanting to fail.
I appreciate what Dragon wrote. There really are dim-witted posts that only serve to bare how distraught people can get when they are running losses. Those posts dwell on pinning senseless culpabilitity on others. They fail to even muster a levelheaded frame of mind and to remind themselves: “BUNTOT MO HILA MO, SUNGAY MO SUNONG MO.”