Wednesday, November 10, 2010

Dead Cat Bouncing

Check out the all new Penny Stock Journal for whats moving.

There has been an improbable air of optimism blown into the market for FAU paper recently by a breathless tout by Mr. Charles Oliver of Sprott Asset Management on Business News Network.

It should come as absolutely no surprise that Sprott has suddenly and shockingly found a reason to become bullish on this paper ... after filling its pockets with rock bottom wholesale units.

A body following that track record of recommending its own wholesale paper to the public at much higher retail levels would find a long and horrid wreckage of failed deals that would rival all VSE promoters put together.

Lets look at a singular example ... ATW Gold on March 27, 2009 announced ...

"ATW Gold Corp. has arranged a non-brokered private placement of up to 7,258,064 units priced at 62 cents per unit to raise up to $4.5-million. Of the $4.5-million comprising the private placement, Sprott Asset Management Inc., as portfolio manager for various funds, is purchasing a total of $3,503,000."

And yes of course there was a (very) brief period when Sprott suddenly became massive big public toutsters of ATW Gold paper ...

There are far more unknowns than knowns about this dopey deal and that is more than reason enough to leave this paper for Sprott and their ilk.