possible ways forward

Warning: This post contains more than 20 words!....LOL

CVI is attempting to establish itself as a Junior Resources company with a portfolio of viable projects covering minerals and energy.

While emerging from 'penny dreadful' status, into a legitimate resouces outfit, it is ultimately the value of quantifiable projects that will determine its market capitalisation. No amount of 'noise' here on Hot Copper will prevent the company from realising its true value. The noise can however impede its progress while the transformation of the company is taking place, resulting in the re-rating process taking much longer than it otherwise would.

We are in a transitionary stage at the moment and captive to the antics of traders that can profit from sentiment as it oscillates between optimism (yes, the company has strong projects and is going to be successful) and pessimism (the company is a dud and an excuse for rorting shareholders). Their posts always reflect their trading position and are predictable in the extreme. Believers simply need to look away and perhaps compete for cheap shares as they attempt to accumulate.

I have a suspicion that CVI ain't going anywhere while there is so much interest in the stock and while the threads are being worked over by the point traders. Such types are reaping a harvest while uncertainty still remains about the company's prospects. That uncertainty by the way is disappearing with each and every announcement made by the company. So, essentially, there is light at the end of the tunnel.

There are two scenarios that could lead out of the current impasse. One involves the support of both credible posters and management, and the second can be managed by the company in its own right.

1. Encouraging sentiment to fade thereby encouraging the point traders to give up in frustration.

The company can assist here by ceasing emails with individual shareholders and saying nothing publicly until they have something of real consequence to announce.

The talented, knowledgeable and credible posters who strongly believe in the story, can assist simply by saying nothing and not attempting to counter the mischievous posts of agenda driven posters.

This would lead to an atmosphere of capitulation whereby only the true believers are left holding stock albeit at much lower levels than exist currently. Then, a company making announcement out of the blue, would have a chance of igniting the market especilly if informed new buying was able to lead the way forward to much higher levels.

2. Blasting the point traders out of the water with a carefully planned set of announcements that deliver a compelling story and place the company in a position of strength.

In such a scenario, the announcements need to be planned and delivered in such a way to prevent traders replenishing their holdings after selling into surges associated with each positive announcement. In that way the share price will project higher and shake free of the manipulative forces of those who prefer to trade on sentiment not fundamentals.

Message for Encore:
If Mark Smyth is still happy to communicate with you after your sharing of his confidential email on a public forum, you might like to question him on each of the above proposals. It can't do any harm!

Oh, and apologies for a lengthy post. Hope you don't mind too much...LOL

Anyway, food for thought.

Cheers
Nev