Aurcana’s response to the pending law suit.
This was included in a press release issued earlier, but I felt it was appropriate to draw listeners’ attention to this particular paragraph.
Announcement by Sutts, Strosberg LLP
Aurcana has noted a press release of Sutts, Strosberg LLP, a law firm located in Ontario that engages in plaintiff class-action lawsuits, in which Sutts, Strosberg has asked Aurcana’s shareholders to contact it in relation to declines in Aurcana’s stock price in recent months. While Aurcana’s management is not pleased with the recent trend in Aurcana’s stock price, it does not believe that the current stock price reflects the underlying value of the Company, and it notes that there have been significant declines in the stock prices of almost all silver producers over this period. There is no basis for a class-action claim in relation to Aurcana’s stock price.
Sorry, but that was a joke from an earlier response. DT
I am amazed at how much this stock has sold off, but beyond the macro pressures from lower silver prices and all mining stocks having a difficult run their major miscalculation was the reverse stock split. Reverse splits are almost always bad news for investors but they picked a horrible time to do it when their stock was at an all time low. If they wanted a higher profile to get listed on a major exchange they have attracted just the opposite kind of attention now. They should have waited for the silver market to recover in late 2013, waited for the share price to appreciate, and then if necessary reverse split. I like Lenic, Aurcana’s story, and that they just opened Shaftner, TX mine. However, they have botched the timing on the split, this created an excelerated nose-dive and has overshadowed their successes this year in TX and Mexico. We always talk about good management as key to a good resource company, and while Lenic has made some good decisions in the past, he has a lot of explaining to do as does their board. I am still positive in the long run but they have fumbled bad here. Good luck to all.
I mean, it wasn’t like they were doing the reverse split to stay listed, they were trying to raise it up to $3-4 so more investors would particate and then they could get it listed. The problem is how diluted most investors are now as the stock has fallen to almost the same level as before the 8:1 split in just 4-5 months. They should have let the news of Shaftner set in, get one to two more quarters of production in, rode out the low silver prices, and then the share price would have naturally gone up. Now people are gunshy. I got out when the split was announced, got in and made a little on some short term trades, but have been on the sidelines for months now waiting for a good entry point. This lawsuit may drive it down further, so may jump back in. Al – Can you get Lenic on the show to explain why they did a reverse split with NO exchange compliance pressure at the bottom of the market? He has some explaining to do.
I wil km definitely talk with Lenic.
I have been financing Lenic for years just like you Al, but that reverse split and his communication and behaviour with retail investors is not acceptable. It scared me so much I sold all my shares and will probably never return. It is a shame, because they are certainly great mines, but this CEO is not competent enough to make this the success it deserves.
Hi Al
I would also like to see a couple of questions directed at Lenic as to what cost containment measures they have put in place to reduce both administrative costs during this time of declining silver prices.
Hi Anne,
I will forward this on to him.
Thanks,
Al
Al if you have four diesel Hummers and you travel 23 miles several times a day to buy cigarettes and beer, my question to you is what kind of a business are you running anyway. I like Brunettes that are also twin sisters. DT