Altius Minerals Post Mortem Part 2

Sometimes I will search a company’s website to see what PDF files and other files they have uploaded onto the website (e.g. use Google to search “filetype:pdf site:JuniorMiningCompany.com”).  Junior mining companies often repost analyst reports, presumably for stock promotion purposes.  It so happens that I did not bother to do this until after I closed my Altius Minerals position at a large profit.  Had I figured this out earlier, I’m not so sure I would have invested in Altius.

  1. Some articles on the site are from an online publication called “Global Mining Observer”.  The publication does not seem to make money from subscriptions and does not seem very serious about advertising.  I think I know what the business model is.  I guess I should not have been so enamored with Altius’ management.
  2. Altius was uploading articles dated early 2013, which suggests that they may have been promoting the stock in early 2013 when Altius was repurchasing shares.  It is odd to go out of your way to promote the stock when you are repurchasing shares.

Ugh.  I guess I need to calibrate my cynicism higher.

 

EDIT (5/9/2014):  Alex Williams of Global Mining Observer emailed me to say that the publication does not receive compensation from profiled companies.  (Unfortunately I have no way of verifying but he likely deserves the benefit of the doubt.)  So I guess my cynicism in this case was likely misplaced.  In the future, I think that Global Mining Observer will attempt to have a viable business through advertising.

 

*Disclosure:  No position in Altius Minerals or Alderon.

Links

How would a sociopath fleece investors in mining?

Altius Minerals announces secondary offering / Altius post mortem – My previous post mortem on Altius

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One thought on “Altius Minerals Post Mortem Part 2

  1. i’ve been reading your blog for a while now and just wanted to say that it’s great to see some fresh thoughts on an investment blog these days. i consider your blog one of the few worth checking out.

    something always felt off about altius. when people seem almost religious about a business, it warrants further inspection. i didn’t buy any despite being tempted. if stock promotion is acceptable at the mining subs, i don’t see a reason why altius wouldn’t do it themselves.

    stock promotion is dirty, even if done to enrich the existing shareholders by pumping the price up and issuing stock. there might be profits here, but i’d rather partner up with people who i consider trustworthy.

    great to see people thinking for themselves. keep up the good work!

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