another cult tragedy

HC News brings you another sad and tragic stock cult story, unfolding daily now on the Most Discussed board. One of the strongest cults formed in the early resources bull, the CMR Cult had risen to giddy heights but now seems destined to disintegrate with needless loss as have so many others before. To bring readers not following this story up to date, first some history on the what, who and how behind CMR Cult.

It started in 2004 really at the beginning of the recent resource boom, led by a charismatic leader who goes by the name Olympian who talks in Tongues which is mostly in unintelligible to those outside the cult. The story seemed too good to be true but through much posting and the strong winds of rising metals and stock markets, CMR stock and the cult’s fortunes grew steadily through to early 2006. The cult adopted a Greek Mythology persona; many changing their names to Greek, praying to various Greek deities and referring to the company as the ARK.

The Cult prospered but went relatively un-noticed during the early years until a Chinese entity joined the company with much fanfare and celebration around mid 2006. The rich Chinese bought money and credibility to CMR and the Cult flourished during what has become known as “The Golden Period”. All great cults have their roots in the mysterious East and this connection saw the Cults ranks swell and their leader’s standing rise to Guru status, for which his followers bestowed upon him the Love Heart. During the Golden Period everything the company spouted was taken as gospel by the faithful and the company’s resources promised to provide secure futures for even the grandkids, delivered from what was coined the “Supermarket”. It seemed everything that boomed was in the supermarket bounty ready for the taking and making rich of all.

The Cult led the company on a great pilgrimage, carried on a pedestal, all the way up Stock Mountain to the ASX200 Holy Temple. Upon entry the Cult celebrated for a month, imbibing great quantities of liquor they call ambrosia which is claimed to have certain hallucinogenic properties and make the drinker actually believe their own ranting. It was during this period of wild celebration and cosmic smoking that cracks started to appear. The first sign that all was not good was the large sell down by company directors followed by a sneaky exit by the Chinese from a large part of their holding. Although largely ignored during the euphoria of a bull market and then disguised by a market correction, history shows that all was not well and the falling share price was in fact insiders heading for the exits.

The next period known as “The Delusion” began for the Cult after company reports of serious cost blowouts and delays, only weeks after an outrageously bullish investor presentation was shopped around by the Company Chairman. The wider market was disappointed but to the Cult this was only a minor setback on the road to the Golden Fleece (or should that be Fleeced?). Things went from bad to worse for the Cult as the share price kept falling even as calls to “harvest the lemmings” came from their leader. Unfortunately it was again well founded selling as another more massive cost and time blow-out for the Oxides project stripped the last semblance of worthiness from the stock and it was disrobed and thrown out of the ASX200 Holy Temple.


The Cult led CMR all the way back down Stock Mountain, their numbers thinned but undaunted, marching and flagellating themselves to the beat of jungle drums. Naked without scaffolded robes and plumage CMR stood bare, a much smaller and lower grade resource than the company had been dressed up to be. Brainwashed, the Cult followers refused to see what was in front of their eyes and continued to admire the emperors’ new clothes even as the market crowd pointed and called out in derision at the scrawny naked figure. The crowd threw stones at the Cult as they passed by but they kept flagellating harder and faster as the drum beat quickened , exalted by their fearless leader, even as some members fell by the way side from loss of blood.

In panic and desperation they rushed to the Compound for protection and safety in numbers left against the calls to come out and save themselves while they can. Some members had doubts and voiced warnings while others left but these people were called “downrampers” and in turn stoned (apparently the term is derived from a belief that those who leave will follow ‘down-the-ramp’ to poverty without this wealth creator).

It is at the Compound this reporter now waits for the drama to unfold. We tried for an interview but have heard that the Cult's usually chatty leader will now only talk with members. Our biggest fear is that the Cult choses to stay and perish in one last tragic act of denial as CMR burns the last of its cash and the compound down with it. Let’s hope this doesn’t end the way of so many other cult sieges!

Goodluck

This post is not advice but for light heated entertainment only during these tough times. It means no disrespect to those losing money or those invovled and makes no judgement about whether now is a good time to buy or sell. The easy time to sell is past and now hard, personal decisions need to be made. These prices IMO reflect a very bad resource market and CMR will either go very well or very badly in the next 6 months.