Comments on: Seven Year Blockade Lifted from "Gunboat Basin"

By: Isabellan

Isabellan — Fri, 07 Mar 2008 01:19:52 +0000

Has there been any more news about CGXEF? Does anyone know?

By: StockGumshoe

StockGumshoe — Tue, 18 Dec 2007 02:14:00 +0000

Hi Morris — the company is named CGX, but it trades on the pink sheets at CGXEF.PK if you’re in the US. On the Canadian exchange the symbol is OYL.U (yes — I assume that’s “oyl” as in “Olive Oyl”, for you Popeye fans out there). The company with the ticker symbol CGX in the US is Consolidated Graphics, which I suspect is the one you ran across.

Price of CGXEF is around $3.50 last time I checked.

That doesn’t mean it’s worth an investment — I know nothing more about it and don’t have an opinion on this one, but of course that’s a decision you can make for yourself.

By: Anonymous

Anonymous — Tue, 18 Dec 2007 01:48:00 +0000

I AM NOW THOROUGHLY CONFUSED!
I got the teaser from Christian De Haemer. Both you and he indicate the stock is under $4.00. He doesn't reveal the Symbol, but you tell us it is (CGX), but I looked up the quote on my TD Ameritrade account, and it is $42.62 a share, todays close!

What gives here?

I was willing to buy a 100 shares @ $4.00 or less, how did it get to $42.62, or is there another symbol for a subsidiary or something.

Morris Johnson morry100ellsouth.net

I would really like someone to send me an explanation of this.

By: Gumshoelurker

Gumshoelurker — Mon, 17 Dec 2007 07:18:00 +0000

In spite of its small size CGX may have a future since it recently succeeded in raising capital ($30 millions)which will allow to drill at least one exploration hole if the funds are not wasted elsewhere. Or it may get a good offer to sell the rights to the exploration acreage by a big oil company.
A common series of pitfalls affect most penny stocks touted by teasers especialy (but not uniquely) small canadian mining & oil exploration companies. A careful reading of annual reports can give a partial idea of how some significant fractions of funds get into the pockets of the insiders before any exploration is carried out. There is of course the case of the very cheap stock options acquired by the insiders before a touted public stock offering has raised the share price. Even if there is a compusory holding period for the optioned shares there is a practice by insiders to short the stock after the offering while the share price is still high & before it starts to decline.
An other instance of syphoning funds is to pay substantial sums for “services” to private companies owned by officers or directors of the company (GCX is a case in point). The touting is also a possible way of dissipating funds since many small companies resort to compensating with cash or with shares individuals or specialized PR firms publicising the assumed investment merits of the shares. Some of these firms & individuals do publicly aknowledge that they “may” be biased in their recommendations as a result of this compensation. But not all.
So I concur with your advice in always relying on serious DD before investing.