Smart Investment - mexicomike.ca

steelpiston71 · Posted: Tue Aug 18, 2009 11:25 am Post subject:

A certain amount of hype will go along with a multi-billion dollar deposit, is that warranted, hard to say, it's a matter of opinion.

club19 · Joined: 01 Dec 2007 Posts: 130

"I know of so many people who seem to have made it a carreer to attack the company, and are critical of just about every news item. Club is certainly one whom I would put in that category. Why waste so much time and effort to scrutinize a company that is not to your liking? I find all of this a bit odd."

Like Vicsmith stated, stating facts and the obvious is not bashing...

Also You have no clue about myself or my position. And I never thought that it mattered that stating facts should be based on how many shares you owned.

All I see is posters on a certain censored board that continually avoid the real issues and attempt to deflect from very important concerns.
You have enough people hyping ECU based on their positions and I am certain you are very biased considering your position. Maybe you should consider the hype that was generated based on unwaranted value at the time. Funny how those that contributed to that hype, including yourself, whether purposely or not, are never admonished but just considered opinions..

Also kind of befuddling that you show no or little concern in the financial position of the company or their 28 million in present liabilities let alone that they made a 6 million dollar settlement without disclosing the same.

Checking further in their financial report, they had only 360 k dollars in contingency for that event..a far cry from 6 million that they settled for.

Personally I doubt that present mining operations will even be able to cover the ongoing operational needs and interest let alone any of the principal owed.

Vic Smith · Posted: Tue Aug 18, 2009 10:22 am Post subject: Bashing or pumping?

Is stating the obvious "bashing"? In the case with ECU you have dig into their financial statements so maybe its isn`t obvious to everyone. Poor disclosure can be summed up in two terms, intentionally misleading or incompetence. Take your pick
I don`t find the market bad. Look at CCE ,AVL, RES,WTM, LSG, QUC to name a few.
Mexican silver deals sported rich market caps a few years ago ECU being a prime example. First silver has not lived up to the hype and so haven`t the marginal silver deposits. Very few of these so called producer have positive cash flow never mind profit and no hope of paying back capital invested.
Any kind of mining is very risky especially narrow veins with highly variable metallurgy.
Vic
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This isn`t investing its speculating.

coach247 · Joined: 08 Apr 2004 Posts: 7640 Location: Milton, Ontario

Hi CC!

Have you considered that the entire junior sector has been crushed during the last year or so? I read somewhere recently that an obscene percentage of the total active trading junior resource companies on the Venture had collapsed to less than 10 cents during this correction. We all know that there are big risks to go with investing in the junior mining stocks, and many things can conspire to put a company off the rails, even in a strong market.

Going down with the ship? ECU traded below 2 cents earlier in this decade and then recovered to almost $4. The share price is weak today, and there are problems to resolve, but the company is infinitely stronger now than it was at its lows. I do not see this company going out of business, but I have been wrong before, because as I posted above, there are so many ways things can go wrong. You cannot forecast all of these things. And there are many people that spend all their time looking for things that are wrong, yet many of the companies go on to prosper nonetheless.

You listed YLL and BGL among your ships that went down. Both are healthy and trading, and demonstrating that management can be resilient to shore up the companies even during difficult times. The jury is still out on Duran, IMO.

I fully agree that you are going to make mistakes in this game, and knowing when to fold and move on is important. Giving up too early on a healthy company when it is trading at its lows is probably not going to win the day.

I am just sharing an opinion here. Its like trying to find a path through a minefield. And I should know. One of the comanies I DID give up on earlier this year is EAS, and after I sold out around 35 cents to take a tax loss, the stock recovered recently to more than $3. You bet that hurts. And btw, I never felt obliged to take a shot at the company, or its management, or anyone that was bullish or remained so. I am responsible for the decisions that I make, and only in a very tiny minority have any of my losses ever been the result of breach of trust by management. If I get carried away in hype sometimes, and I do, then its my problem if I didnt recognize that and sell. If I gave up on a stock because I was influenced by bearish comments, that is my fault too.

cheers!

mike
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Its only a gambling problem if you are losing...

Coral Calcium · Joined: 05 Nov 2006 Posts: 259 Location: New Jersey

I think there is a big difference between "throwing the baby out with the bathwater" and "going down with the ship'. At least you get SOMETHING when you admit a mistake and move on. Exmin, ECU, Bandera ( still have hope ), Yale, Duran, GPXM, Buffalo, etc. I certainly know that I have gone down with far too many ships and I am trying to correct past mistakes rather than being in denial and getting wiped out completely.

coach247 · Joined: 08 Apr 2004 Posts: 7640 Location: Milton, Ontario

Hi Club!

I would agree that more forthright disclosure would have been appropriate to announce the settlement and the payment terms. Where is the money going to come from? Well, they have a structured term to pay off $1 million per year, with the first installment already paid, and I think that is within their means to do so for the remainder, especially since they are now generating income from operations.

For those who question the popularity of ECU and wonder at the market cap, I would counter by pointing out how many aggressive detractors the company has. I know of so many people who seem to have made it a carreer to attack the company, and are critical of just about every news item. Club is certainly one whom I would put in that category. Why waste so much time and effort to scrutinize a company that is not to your liking? I find all of this a bit odd.

For my part I have chosen to stay with my investment choice, not because of the positive commentary from those who DO like the stock, but because I believe in the end that the resource will justify the many hurdles that were faced along the path to development. I think the mine will ultimately become one of the larger operations in Mexico, whether it is operated by ECU, or acquired in some deal along the way by another player. I have never been blind the issues that arise with this company, but I do not think it is appropriate to just throw the baby out with the bath water. For those that do not wish to deal with the drama that always seems to be part of the equation, look elsewhere.

I find these endless debates tiresome. I have made my own personal disclosure very clear as to my interests. I have no desire to be the spokesperson for the company. This is an open forum. Address your questions to the board and I will chime in as I see fit.

cheers!

mike
_________________
Its only a gambling problem if you are losing...

club19 · Joined: 01 Dec 2007 Posts: 130

I wonder what coach thinks of the 6 million dollar settlement ECU made May 19 with regards to those titles???

Isn't this a material change event??,
I haven't seen any announcement other than what was stated in the latest results.
Very disturbing, especially when only 360k were set aside for contingency relating to this matter as far as I know.

where's this money going to come from ???

Vic Smith · Posted: Mon Aug 17, 2009 12:11 pm Post subject: Shorting in Vancouver

Forgot to add. There is naked shorting but you can get away with going short if you cover before the end of the day. Its taken very serious in Vancouver and you can lose your trading privileges even on an honest mistake. As most Vancouver brokers segregate their shares it can be difficult for outsiders to borrow especially on newer companies where the float is still on Howe Street. Look for companies with large amount of shares registered at The Canadian Depository for Securities Limited. These can be borrowed easily and anonymously.
vic
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This isn`t investing its speculating.

Vic Smith · Posted: Mon Aug 17, 2009 12:01 pm Post subject: Any Vancouver based firm

Canaccord, Wolverton, Pacific International, Haywood, Union.
There are no restrictions on price at these firms its based on the ability to borrow the certs and your margin requirements. At Vancouver based firms you can take in warrants from private placements and if in the money you can short against them and cover by exercising the warrant. they do all the paper work. Trades though are around $85 minimum. Everyone that is in the junior mining markets in Vancouver deal with local firms as we are dependent on brokers to finance us. Also as we deal alot in certificates that need signatures guaranteed etc. it is better to deal with cage staff that know who we are.
vic
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This isn`t investing its speculating.

steelpiston71 · Posted: Mon Aug 17, 2009 10:58 am Post subject:

Vic, what Brokerage house let's you short stocks under $5, in this case, $2?

muskoka · Posted: Sun Aug 16, 2009 11:12 am Post subject:

ditto

mine is IPT for silver and ATW for gold, plus a whole lot of dabbling and trading elsewhere.

Doug
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waldipup · Joined: 06 Apr 2006 Posts: 8429 Location: new york usa

I'm one of the vociferous silver jr. supporting nuts , but have expressed confusion several times here over the popularity and status afforded ECU.

When looking at various factors concerning it , including share count ,

I just cant quantify its lure.

IPT , and GOZ (per gold) I understand the enthusiasm , and own - but ECU?

Just doesn't compute to me. I wish em good luck.

Vic Smith

Gets the Gata crowd against you seeing it was touted so much by their list, one of the reasons I got out of it years ago. What is the market cap? Still too much. I`v taken huge personal attacks from people on the internet because of my positions on ECU and NDM. ECU is going to pennies and NDM will follow. NDM is one of the best shorts on the market. KMK is another Hunter Dickenson deal going to pennies. Chinese have screwed them. I will get the last laugh on NDM and too bad I can`t gloat on the corpses of their followers. I love this business. ECU is going to pennies, what it was worth in the beginning. Only stating the obvious. My 3 best trades in 2008 was shorting NDM, ECU and ENG
Vic
_________________
This isn`t investing its speculating.

PollyB · Joined: 16 Dec 2005 Posts: 48

I do have GOG in the stock contest and hold a very small position. That aside I can't understand Coach's position here. ECU's explanation sounded good to him? He seems to have something personal against GOG management. I will sell my GOG mostly because of ECU.

coach247 · Joined: 08 Apr 2004 Posts: 7640 Location: Milton, Ontario

I think ECU has presented a valid explanation of what has been going regarding the processing of that waste rock, and if the ECU version is true, it does cast doubt on the entire game that GOG is playing. Surely they would have at least made some contact to ECU to find out what was going on before issuing a NR of a dispute. Is that not irresponsible and damaging to both companies? I do not know the truth of which version to believe on any of this. As a shareholder I am disgusted that we have to endure yet another round of counterproductive wrangling that has nothing to do with development of the mine.

cheers!

mike
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Its only a gambling problem if you are losing...