@fluffynymphMy experiences posting on the CGB thread as a contrarian have been much less than positive. In short, if you haven't had a good old gulp or two of the Kool Aid then ... well ... I guess you now have some sense of the kind of response you will receive for not ... being anything less than 100% imbued with the '
potential' wonders of a company that just keeps chomping through cash!
One or two things are often placed to one side by many who purport to being well researched '
investors'
Confirmation bias
https://www.forbes.com/sites/peterlazaroff/2016/09/28/confirmation-bias/#271e27e84b7dI refer whoever is interested to this 'moneysmart' checklist for investors. This kind of stuff is not too hard to find online. Everyone who enters the
micro and small cap end of the market ought to have this stuff pinned on their fridge.
My source
https://www.moneysmart.gov.au/investing/investment-warnings - this is publicly available information.
Some things to look for that may indicate something is not right with the company you have invested in:
(a) The company continually raises funds but it's not clear what the funds are being used for or there is nothing to show for its expenses.
(b) The company does not release updates on their exploration or research and development (R&D) activity.
(c) The company is
paying large consulting or service fees to related parties. (AGMPL)
(d) The company's accounts have significant unexplained or unusual expenses.The company
has taken on loans, asset sales or
purchase agreementswith related parties where there is no clear business purpose or benefit. (Volcan + AGMPL loans + AGMPL Management services agreement) (
see Half Year Report).
Clearly, the above is neither exhaustive nor is it compelling on its own. Nonetheless, it may provide some useful tools to whoever is so inclined..
Whether individuals can or, want to be informed and as free from bias as is possible that is up to them. However, it is unreasonable to slight those that are willing to examine things a little further - I think?
