How the GAME is played I saw a post on the weekend that referenced the pathetically low share positions of the directors. Impossible to imagine this company is sitting on a massive gold strike and yet the directors sit idly by with no interest in buying the stock themselves? As a director you are privy to ALL the most important information of the company. That includes the progress being made on proving up a resource estimate. During that process there are continual discussions between the staff geologists, Peter George and senior management including directors before it is published. For months they should have an "indication" this was going incredibly well.
No possible way Peter George just walks into an office and tells the CEO "hey did you know you have 10 million and maybe 90 million ounces here ?" To which the CEO jumps out of his chair and exclaims "fantastic, lets rush that right out as a news release. It is sooo fantastic I would hate to discuss that first with anyone else within this company. After so many years of working on this project and all the drill holes, we really had no clue it was this big. My how dumb our own geologists must be that they never saw this GIANT number coming. I am so excited YOU were so much smarter than everyone else working in this office !"
Now I fully understand why the directors had no interest in owning stock. NO ONE had any clue how massive this project was. In fact, the company's own geology staff must be fresh out of high school because they have been working these numbers for a very long time and it appears they don't know how to do resource modelling on their computers. That or they are AWESOME at keeping secrets because even the company's board of directors had no clue they were sitting on what appears to be the largest gold discovery in North America !!!!
Maybe all the numbers were fed into a top secret program that George guarded with his life. He then must have hit the Enter buttom and whammo !
And by the way, saying the directors own options which is why they don't buy the stock, carries zero weight. Options given to directors and senior management for doing very little is a joke with these little exploration companies. They carry NO risk. In this scenario Barkerville's own directors couldn't risk their own money. Even when it was near 40 cents. The in-house geologist should have known by then this deposit was as massive as they say. If they were not buying, why ? Did they not understand where they were sitting on 10 to 90 million ounces ? What had they been discussing in director meetings all year ? The weather ?
And for all you posters that keep referencing the "shorts" and shorting this stock as the big motivation for negative posts. Have you EVER tried shorting a Canadian penny stock ? It is bloody near impossible! In fact, if you have direct proof of where it is being done by the average investor, PLEASE enlighten us with the name of the brokerage firm(s).
For one thing 90% of the discount or full service brokerage firms will not allow it. And if they do, you have to be a wealthy or influential client. Typically not the type of person that is posting to these boards. I know I am not and I suspect most everyone here is not. And unless your lying I would be shocked if more than a small handful of people here have shorted a Canadian penny stock for years. It just isn't allowed.
I will tell you who likely DID short this stock or sold huge volumes in the week or two following that news release. Anyone who held cheap warrants from a financing. This will include brokers, friends of brokers, friends of insiders, you name it. They likely dumped millions of dollars into this buying on the runup because that is exactly how this "game" works. Don't kid yourself.
And if they didn't excercise warrants that go back into the BGM treasury, then they still dumped boatloads of paper. And do you think the CEO cares now if the price is 80 cents, 70 cents, 60 cents ? Likely not. And you know why ? Because all the friends and buddy brokers have offloaded as much paper as possible at big gains while taking advantage of everyone that bought on that news.
And soon enough you will see a financing done at the cheapest possible price and with the cheapest possible full warrant attached to it. They won't do this right away because things need to cool a bit and this "famous" resource report needs to go through the motions.
In fact, they could be forced to revise that resource report which could result in the stock dropping a lot further. And do you think the "game players" will care ? Likely not. The buddies all made huge money on this runup at everyone else's expense. And when the time comes to refinance, they will reload cheap paper and warrants again.
Friends and associates free up BIG cash on the runup plus they will end up with just as much stock through a cheap financing, the company will be reloaded with cash, and it will be business as usual at good old Barkerville.
Why do I think this ? Because this is EXACTLY how the junior mining game is played by stock and mining promoters. And it has has been for decades. In this case I just think BGM went overboard with one of the most overzealous news releases you could think of. And why on earth they were allowed to do that is beyond imagination. In fact it was insulting to the the intelligence of the average investor.
And also don't forget, as part of the entire mining promotion game, these boards are littered with people hired to specialize in creating optimism, shooting down criticism, etc. etc. They are easy to spot and this board is no exception.
This is a game people and BGM "appears" to have stretched the rules somehow by claiming up to 90 million ounces of gold. And so far they have been allowed to do it. To the detriment of the entire junior resource industry because credibility for other legitimate companies has been hurt in the process.
The victims here are the people that got suckered into buying at much higher prices following that news release. The game players were stumbling over themselves to feed paper down everyone's throat for almost two weeks and then sat around downtown Vancouver bars laughing on Friday night. Adding up how much money they made at everyone else's expense.