Jim Letourneau's Blog

Investing, Technology, Travel, Geology, Music, Golf. I think that covers it.

Scams and Spam

One thing I like about the mining sector is that it hasn't been a particularly profitable arena for scam artists. There was a tech boom to exploit after all. That is obviously changing very quickly. A Canadian Business article by David Baines (the Herb Greenberg of Canada), Our Dirty Secret, shines a bright light on the OTCBB. It includes tales of "hedonistic binges" by the scam artists who "like hookers are pushed from one street corner to the other". None of the examples were mining frauds, although I have no doubt he could have included a few from his extensive files.

Very few resource companies ever grow to the producing mine stage. Since they don't have cash flow they need to raise money from investors. We take it on faith that they will use the money to ad value to the company and not go on "hedonistic binges". The earlier investors get to sell to the ones that buy later on. Generally that means from insiders to retail investors. That is why investment conferences are free to attend.

I generally like the companies I own to be promotional, but banner ads and spam emails send a chill down my spine. My gut reaction upon receiving a promotional email is "aw crap", I own one of those companies. However just before uranium companies took off I got an email from UEX Corporation with this article attached. I thought things must have been slow for them but I kept the faith. Of course my promotional offer to all my trial subscribers was definately NOT spam. It was different, more like spork or prem.

I don't recommend individual companies but I've provided a watchlist for further research. It is fair to say I am bullish on uranium today but speculating is a one day at a time endeavor. I prefer buying uranium explorers to storing uranium in the garage. The band needs it for rehearsals. At least they did until today when the City Bylaw Officer dropped off a formal noise complaint. It was soul music, not noise and, they always finished up by 9:30pm. I must be a speculator, my first question was what's the downside if they practise again. How much will it cost THEM (I am not in the band). Anyways they have a nice piece of paper for the archives. Who knows, maybe one day it will end up on a CD cover or JPEG associated with a download.

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