Monday, January 26, 2009

Plexmar (PLE.v): Another miner to avoid like the plague

How this for an example of self-serving management that will screw shareholders at the first possible opportunity? Plexmar (PLE.v) is a junior miner in Ecuador and Peru with a very poor track record of promising much and delivering little. So when it recently announced its deal with local Peru miner Ucucha to go JV on its 'Bolsa del Diablo' project in northern Peru I had to wonder where the catch would be.

It didn't take long. On January 16th, the very day that PLE.v issued a PR to say that the contract was signed, company insider Juan Contreras (a local landowner brought in to help with communications) sold 279,000 shares into a market that peaked that day at $0.12 on very heavy volume. Here we are six trading days later at $0.075. You can't help but wonder how many more insiders are left to file their trades, eh M. Bedard? As for Contreras, what kind of message do you think he's "communicating" with his actions?


Companies like PLE.v (and there are many others) will screw you into the ground and skim money off your back for years on end if you give them the chance. So don't give them the chance. just avoid these scam ridden management teams and keep your eyes peeled for the people that care about all that come on board their companies, not just themselves.

PS: I've had an e-mail conversation with somebody I repect greatly about another company with directors caught screwing its shareholders recently. The only reason I'm not mentioning its name here is that it doens't operate in Latin America, but that company is just another example of how a decent and trustworthy management team is more important than a good project. Self-serving management teams will continue to be called out on this blog, and they can go f themselves...I'm sick to death of the scammers. Conversely the good ones will be named as good.