Aurcana Silver Corp V.AUN.H

More on promotion from http://www.financialin

[Bentonstocks]

The term promotion is normally perceived in a negative light. Indeed, there are “unethical promoters” in this industry who misrepresent their company’s attributes through deceit. They do this in order to attract buying to their stock with little concern for those whose confidence they betray. Knowing this, it is the investor’s duty to be aware of their existence and to do your best to steer clear of them. The old adage, “if it’s too good to be true it probably isn’t”, should be kept at the forefront of one’s mind, and adhered to when you evaluate any company. In the mining industry a certain amount of promotion is mandatory! This is due to the poor dissemination of information that is inherent in this market. It is virtually impossible for the various market players to know and properly evaluate the progress that thousands of junior companies achieve on a daily basis. This includes the resource market brokers, analysts and other professionals. For example, if an obscure company “pulls a hole” or acquires an important project that has great implications for its future, few individuals may initially recognize that fact. Those who do will be able to make their purchases without increasing its share price to a level that is commensurate with the company’s new state. Therefore, it is not unusual for a company to be forced to unnecessarily dilute its share structure when they go to the marketplace to fund new work programs or its major acquisition. This occurs because they will have to issue far more stock due to its lower than justified price, and also reduces their shareholder’s profit potential. It is for this reason that promotions that are meant to make investors aware of a company’s advancement are not only justified but are crucial to the company’s progress, and to their stockholders. If performed successfully it will make a far wider segment of the investment community aware of their progress. This in turn will attract sufficient purchasing of their stock to raise it to a fair market level. When done properly, without the primary motive to prey on the unwary, it will benefit the company, its stockholders, and the industry.