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28.5¢ austar gold limited

Except in MNMs directors case they frequently take shares in...

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3,592 Posts.

13/03/15

11:05

Post #: 14908064
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Originally posted by Chainsaw1 ↑

directors putting money into small cap species is the biggest scam going.Heres why: Directors state they are supporting the cr by putting in token amount of $$$, say 20k or so, and this in turn encourages long suffering shareholders to believe that they should follow the "smart money" and they in turn support the cr, and the cr is a success.But here's the rub;the directors then pay the money that they contributed back to themselves in the form of wages,director fees,consultancy fees etc, plus they get your money to pay these wages etc as well. so the bottom line is that the directors can't lose by contributing to cr, but you certainly can, and IMO will.

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Except in MNMs directors case they frequently take shares in lieu of pay and if there shares depreciate in value as is the case here it is effectively a fairly substantial paycut and again in this case of a fairly illiquid share having millions and millions of shares means you cant even recoup your wages due to not enough buyers.I can see where you are coming from though Chainsaw but happy to correct you in this particular scenario.Have to go and do some work now but I am sure someone else will be along to keep you company

MNM Price at posting: 1.0¢ Sentiment: Hold Disclosure: Held
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