Re: A strak comparison...
in response to
by
posted on
Mar 15, 2010 10:40PM
(Edit this Message from the "Fast Facts" Section)
I might have a clue as to why SFMI is not taken seriously by the investment community. I spoke to a family member about investing in SFMI recently. They went on the internet and discovered s boatlosd of negative information about the CEO, the previous role(s) he has played in business, and the stock structure of SFMI and Gold Corp Holdings and concluded that this company was a scam.
From the outside, I can understand his position. There is a management with a shadowy past, and a corp structure which permits the insiders to scoop up shares at a discount, as long as the company isn't producing. They haven't done the best job of getting production started. Many of us have invested real money, on faith that we will be rewarded, however, the fact remains that the board and those who have recieved shares in exchange for services, (boar members, IR, accountants, "consultants", etc.) will become very wealthy when the 5 cent shares they get now become $5 shares. 100MM have been given out in the past year. He wasn't convinced that this is the way most startup mining and oil companies work. In spite of this I am happy that the speculators have stayed away. At least no one can accuse this company of being a pump and dump...
I would certainly love to figure out a way to do some work for SFMI in exchange for say 1MM shares at the current prices. Not bad work if you can get it. They talk about the buyback, but this too will only benefit the management by increasing their stock value and ownership %.
I am sure these things are keeping alot of people away from this stock, and may for a long time. I think that Pierre could help the cause if he would come clean about his mistakes. Disclosure and transparancy. and outside board members would help. Our understanding of the truth about how much gold will come out of this mountain is being overshadowed by what many consider self dealing. For full disclosure, I have been responsible for myself and others I know purchasing in excess of 2MM shares, and we woudl certainly like to see the compny succeed, not only in the mine, but also on the marketplace.
And, when I see press releases like the last one, I can only laugh. The board of both companies is the same. My first thought is that Pierre was talking to himself, wich is not a good sign.
Iggy