Jim Letourneau's Blog

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

Don't Cry for Crystallex

Sometimes a stock symbol can represent the essence of a public company. In the oil business symbols like EOR, LNG, MCF, and BTU play on commonly used industry acronyms. If you're attempting to build a gold mine in Venezuela,  like Crystallex International Corp. did then your probably doing some crying.  The stock symbol for Crystallex is apt (AMEX:KRY, TSX:KRY). You can stick a fork in this one as it is done like dinner.

I was writing about Crystallex in 2005 - given the political landscape, it would be rather obvious to an outside observer that Crystallex was not going to be building a mine in Venezuela. Why did management tilt at windmills and insist that the project would move forward in spite of ample evidence to the contrary? I don't know their motives but the stock chart shows when investors stopped believing.

10 year Crystallex chart

The lawyers are all over this one now and as is often the case, they'll be picking the bones of the Crystallex carcass clean.