Liberty Silver, Clearly Canadian Scam
There are ten thousand reasons to sell a stock but only one reason to buy. You buy a stock because you think it will go up.
You may want to sell because you need a new Porsche. Or a new bicycle if it hasn’t done so well. You might sell because you want to go to college or to send your kids to college. For those unfortunates who don’t yet have a trophy wife as I do, so you can keep a trophy wife in the style to which she would like to be accustomed.
So I never issue a “sell” signal. If I did it would cost people money that still believe the stock can go up. But I’m going to break my own rule. If you own Liberty Silver, you should sell. If you don’t own it you should short it. It is the most clear-cut example of a pump and dump I have ever seen. It may even be a legal pump and dump but it’s a scam, legal or not.
I went to the Trinity Silver project about two months ago. Liberty Silver has an option on 70% of the project that they can own by spending $5 million on the project prior to March 29, 2016 and completing a bankable feasibility study.
The Trinity Silver Mine was mined by US Borax from 1987 until 1989 and produced some 5 million ounces of silver from an oxide deposit near surface grading 6-ounce silver. The tailings contain about 3 million ounces and at $32 silver probably could be processed profitably.
Historic numbers from US Borax show 10 million ounces of sulfide material with a grade of 3 ounces per ton below the existing pit. It could be mined but wouldn’t be wildly profitable.
The Trinity Silver prospect is interesting. It was mined, there is a known resource, the technical people hired to do a study on the property, SRK, are highly qualified professionals and the group doing the permitting are 1st class. All of that is totally meaningless.
68 million of the 87 million shares outstanding were issued at prices between 1/200th of a cent and 1/4th of a cent. The SEC halted the stock so they could determine just who owns it. I’m not sure they figured it out but behind the scenes is the biggest promoter in Canada, Bobby Genovese. Others use a different term for him.
In the piece on Bobby Genovese, he speaks about owning 11 properties all over the world along with his jet, boats and expensive cars. He claims to have a fortune of over $200 million.
I’m going to make a new rule; I’ll call it the Moriarty rule of investing. If you invest in any company associated with someone who owns 11 homes all over the world and who bought shares in the company for under a cent, you are going to pay for those 11 houses for him.
Bobby Genovese has a long sorid history of destroying the companies he promotes. In the end he benefits and the ordinary investors lose. I’m going to give ordinary investors a fair shake because they are our loyal readers.
Dump this piece of crap if you own it and short it if you don’t. There isn’t a chance in hell that anyone is going to invest the additional $4 million and a bankable feasibility study in order for LSL to ever own 70% of a project that might be worth $10 million if you were the dumbest investor in mining.
Before being halted in early October, the pump done on Liberty Silver got the price up to $1.57. After the halt on the shares and they began to trade again the shares went from $.50 to $1.38. Everyone with any sense has had all the chance in the world to bail out. So for those of you sitting down at the poker table that still hold Liberty Silver shares and are wondering just who the sucker at the table is; it’s you.
It wasn’t worth a market cap of $131 million six weeks ago and it damned sure isn’t worth a market cap of $62.7 million today.
I don’t think Liberty Silver will want to advertise. I never owned a share and I am not short any shares nor do I intend to invest in Liberty Silver in any way.
Liberty Silver Corporation