RE:RE:RE:Pan American Selling Again
I totally agree with Funguy's synopsis on NUAG. Here are my reasons.
1) Pan American still still has 14.5 MM shares on its books which based on previous actions one can only assume they could unload more at any time . They are now at just 9.98 % holdings in NUAG so they no longer have to file insider reports on their sales. They are highly likely to be the 01 anonymous seller that has been pounding out shares on a daily and minute to minute basis. Even so they may have only managed to unload another 700,000 shares as there has been a lack of real volume in the name.
2) BMO , who did the bought deal is badly hung on the name, at least according to what I've heard. Basically that means they coould not place the 12.5 MM shares they bought. Estimates are that they still have over 6 MM shares left on their books. Thats a wall of stock for sale when it trades 200,000 shares a day. It will be months of selling for them to get off that , if ever.
3) As Funguy says, there is no real value to a stock in a banana republic like Bolivia that is cracking down on corruption and shady deals . Election very soon and NUAG has said in its own press release that it has yet to obtain rights to the land. Keep in mind that this is barren land which a bunch of holes punched into it. There is no mine there and it will be many many years before they can even build a mine there if and when it ever proves too be a feasible project , which is a costly venture in the jungles of Bolivia where access to infrastructure and lack of road access makes is next to impossible to mine. The stock valuation today even if they were to get rights to the land is at ludicrous levels.
4) This stock is pumped hard by paid promoters through tout sheets both in the USA and in China. Its a total promote. We all know how those end.
5) CEO has stepped away and now distancing himself
6) Company has no current operations in Bolivia. Therefore there is no possible news they can report . Hence they repeat old news such as the recent news release rehashing thier mining and feasibiliy .
7) Finally , the gig will be up very shortly when the anti- corruption Bolivia government tells NUAG to take a hike. Election is just over a month away so you knwo this news is coming and that why Pan American is dumping their shares as fast as they can. Don't think they don't already know NUAG's fate.
Bottom line is that anyone would be crazy to buy such and overvalued stock that completely lacks fundamentals and has 10's of millions of shares of stock for sale ( see points 1 and 2) . Way better to buy a real gold stock than get killed in this name. OSC oor SEC could shut down this mirage any day now. Just another Chinese manipulated stock , the same type that they are delisting and shutting down on a daily basis now.