Take physic, pomp


Constitution Mining (CMIN.ob) reported last night. It was funny. But this time, instead of keeping the joke private, let’s have a look at just a few of the numbers printed by this scam so far and give my constant ranting some factual evidence. By the way, what follows (and the recent set of charts on that other flea-ridden dog ECU.to) are a quick selection of the type of analysis we typically run over at The IKN Weekly on stocks, except that:

1) The analyses are far more complete in The IKN Weekly
2) We tend to look at stocks that are possible investments and not the joke end of the mining sector

So with the preamble out the way, here are a few numbers. Assets look like this:

In other words, this company pretends it has a book of fixed assets worth money (a joke in itself, as they’ll never be exploited) but has nothing in the way of true worth in cash, cash equivalents etc.

Debt is already rising:

I thought about adding in the estimates for 2q10 now that the $7m convertible is signed and the Seabridge deal is about to close (apparently on May 20th, but there’s a certain smell about that too). But if I did the $11m or so estimated debt would probably scare the bejeesus out of you, so let’s just keep to the reported numbers.

Here’s working capital:

These people are running a big game of Stone Soup, no more and no less. They’ve never had money to develop their already scammy projects and are bound to dilute soon and by a lot in order to raise a bit of cash to so their thing. According to the quarterly they need about $3.5m to get through the year. This implies that, along with this working cap deficit, they’ll be trying to raise at least $5m via share sales very soon (the qtrly rules out a debt deal and makes it clear dilution is on the way) and knowing these BSsers for what they are, they’ll try to raise more.

This brings us neatly to the shares out evolution.

We’re already up to 78.95m at end 1q10, that number is already up to over 86m today thanks to payments on the debt deals and you can bet your sweet bippy it’s going higher once the latest round of dilution is over. But even at the 1q10 shares number, this values CMIN at over $57m, a joke in itself. If you think that a company with $68,000 in cash, a silly pick-a-number made-up fixed assets value of $20m a constant working capital deficit and rising debt is worth 2.5X BV, then I’ll leave our friend the owl to comment on your analytical prowess:

Otto’s sez: Avoid OTC mining stocks, but if one really does appeal to you and you then invest in it without looking at its regulatory filings you deserve to lose your money through sheer stupidity. DYODD, dude.

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