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2/12/09

The boyz are back in town


It's been a barren six months or so for da boyz, but it looks like they're back with a vengeance. Here are two examples of how the Canadian brokerages never lose.

Jaguar Mining (JAG) yesterday announced a $75m placement late yesterday afternoon. This is a royal pain in the behind for many people who have been lead to believe JAG didn't need to go to market this year. It's a stock this humble corner of cyberspace follows closely, and I was looking for a sub $5 number to buy back in (after selling nicely recently). Frankly, I was lucky that it didn't break 5 to the downside as I'd now be one of those swallowing this brokerage-inspired episode of greed. Luck plays its part in this game. Period.

As said before, I like JAG as a story. Also said before is that I don't like the lack of gold mining expertise and the overburden of numberheads at the director level. Gold miners are best run by gold miners, not slide-rulers. I certainly don't like this unecessary dilution, as adding 15m or so shares to the 53m oustanding isn't something to be taken lightly. Meanwhile.......

Colossus Mineral (CSI.to) announced a $21.5m placement this morning. This is about as subtle as a poke in the eye with a pointed stick. Here's how it goes, folks;

1. Stick your diamond drill machine into a place where you KNOW you'll hit a beautiful return. I mean if lil' old me, in just one morning, can grab hold of this PDF dated 2002 that says the Serra Pelada zone just drilled would be hot, would you call this info a brand new discovery?

2. Announce the results with pipes and whistles, and make sure all your Canadian friends with CFA after their names hit the phones and make their client base fully aware of the numbers.

3. Don't mention anything about the very iffy local politics in Serra Pelada.

4. Watch that share price rocket on volume

5. The very next day, go to market and squeeze 'em all to the tune of $21.5m.

"Carpe Diem", or "You takin' the piss 'ere, pal?"....YOU BE THE JUDGE!

Strange coincidence to see The Albatross on the roster at Colossus, isn't it? I mean, Aurelian never tried to screw its shareholders into the ground in this way, did it? Oh, by the way, Albatross...nice timing on those options, dude.

Jan 21/09 Jan 21/09 Anderson, Patrick Fergus Neill Direct Ownership Options 50 - Grant of options 200,000 $0.480

The Canadian markets, the chummy-cosy managers of junior miners and the sleazy brokerages that have them all by the balls are a prize joke. And the funniest people of all are you retail shareholders up there who fall for these tricks every single time. Isn't it about time you got yourself a regulatory body that actually does something about the corporate criminals that ruin your investment life in quasi-legal ways? Nah...don't wanna ruin a good thing now, do we......?

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