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2/27/13

Metanor (MTO.v) mailbag

When not one but four separate mailers* take time to write into IKN Nerve Centre with either positive words or inquiries about Metanor Resources (MTO.v) in the space of a single morning, it's clear there's yet another round of promo pump going on around the stock. It's also time to stick a note up on the blog, rather than reply directly. Therefore:
  • Yes I know they've been pouring gold, it says so in the recent NRs. Mmmm... shiny, heavy, pretty coloured gold.  Does it give you an idea as to how much it's cost them to pour that gold?
  • Have you seen the state of this company's balance sheet? Negative $5m working cap, a heap of current liabilities, another chunk of long term debt.
  • Does it worry you that MTO has forward sold a significant percentage of all future gold production to Sandstorm? Did you know? Did you bother to look?
  • How about those director salaries, all North of U$20,000 per month. And those guys have upped their packages every year and always in cash, no incentive options (because they might have a better idea as to how much those equities are really worth). 
  • And on the subject, check how many shares out this company runs, and how they hold sudden, unannounced private placements every so often to dilute holders down even further. And even if, by some deity-inspired miracle, this company starts churning out a net profit, what kind of EPS will you be staring at thanks to all those crunchyfun share certs?

The bottom line to MTO.v is that if you take a company that's anally violated its shareholders for years on end, read its NRs, fall for the pumps from paid pushers like Jay Taylor, don't bother to look behind the curtain for yourself or think it's suddenly going to change its modus operandi because it's finally pouring a bit of gold, then you deserve everything that's coming to you, good and hard. That's not just about MTO.v either; that stock might even go up bigtime (though I highly doubt it) but the wider point is far, far more important. If your idea of an investment opportunity today is a stock with the track record of MTO you are doing this all wrong and will lose lose and lose again when investing in junior mining companies. So stop now, close your account and put your cash in a time deposit or T-bonds.

Just a bit of friendly advice which you can decide to take or leave. After all, there's no law against being a stupid fucker with your own money. Please be having a nice day thank you please.




*at least i presume them to be separate