Re: 30 cents - What a joke
in response to
by
posted on
May 05, 2010 03:18PM
The investments banks play a big part in pressuring exploration companies lower, it's just what they do. The basic concept is that exploration companies sooner or later have to acquire funds to continue their drilling along with their pre-drilling searching for the spot that gives them the best probabilities of ultimate success. The companies do this with new stock offerings.
In the case of the recent property acquisitions, how much money will be required to determine if Probe has a viable property or two? The answer to the question is, most probably, they'll have to trade some treasury sharese to continue drilling in the near future. This gives the investment banks the opportunity to cover without going to the market. So, with lax regulatory oversight in Canada, naked short selling is on-going in a high numbers of exploration stocks just awaiting the day of the next offering.
It's not just Probe that seems to be going lower and being held down but it is many other explorers as well. The best we can do is hope for the best or continue to put in scale down buy orders and buy some of these shares at perceived low levels. By not regulating the investment bank's activities, the way these commissions should be doing, the end result is continuing theft from current shareholders plus, naked short selling seems to be clearly just FRAUD.