Jeffrey Todd_

Crystallex on the Regulator’s Radar

How long will it take for shareholders of Crystallex to figure out this company has no clothes? This situation reminds me of 3 Card Monte. No matter what you point at the answer is always the same. The new management is sitting in their tin shack under a few dripping palm trees trying to figure out the next move. The CEO is wiping sweat of his forehead with old stock options. This stock is like a can of rotten tuna fish. Sooner or later someone is going to open the can and stink up the house. It's time to expose the management and its lack of attire.

Crystallex Affair Requires SEC Investigation

I did stats on Seekingalpha for the last 6 months. Using spread sheets and entering long/short calls published in SeekingAlpha Ifound some trends, You would have been ahead investing in (SPX) and buying long on short calls. In fact if you had shorted long calls in SeekingAlpha you would be up 29% since Oct 2006. Most of the returns on the short side were in energy.

I feel too many publishers are making calls with their own site and promotion of their products in mind. This is too bad. If one reads IBD and follows stocks in the news or stocks with high ratings, these are the stocks profiled in SeekingAlpha. Not the time to buy.

I'll bet SeekingAlpha won't publish this article. That's ok I have my own site.

Crystallex Affair Requires SEC Investigation

Crystallex Inc., a gold miner, was hurt today on rumors Venezuela will nationalize the mining industry. The minister's comments were vague and not on the point. If Hugo nationalizes the foreign interest in mining he will lay an egg that will cost his country billions. He and his ministers are not on the same page. What he will do is tax foreign companies at a rate that will return immediate income. He does not have the resources to initiate nor support a nationalized mining campaign.

Most of Hugo's deputies are fielding questions right and left. They are using talking points without specific guidelines. Even Chavez wakes up each day with a new outline.

What he has nationalized is in place, running on overdrive, and profitable. Mining in Venezuela has mostly been a "cottage industry" and he will not settle for that status quo.

Hugo Chavez is many things, but not stupid.

The Place to Be for Gold in 2007

rystallex International Corp (KRY), is a small gold miner based in Canada with current interest in Venezuela. It has been holding permits to mine over 13 million ounces of gold in the Las Cristinas property. But these permits have been wilting in the midday sun.

This stock's future rests entirely on the fickle economic shoulders of Hugo Chavez. Crystallex has the initial permits but is still waiting and waiting and waiting on the environmental go ahead. The NAV has flat lined around 2.70-3.50 for over 3 months, kept there with nothing but hope.

The current political environment has made this stock a day trader's dream. The term, (rocking chair), a stock rocking +/- due to non-internal pressures, allows one to profit many times a day.

Should the environmental and Chavezamental permits be granted, Crystallex will definitely takeoff. But, environmental attitudes are presently in chaos down there. Changes in cabinet, pressure from locals, and generally unpredictable decision making, have stalled the ongoing process. But this stall has kept the stock where it is at and not significantly lower.

If Chavez grants the environmental permits and allows foreign economic interests to displace the local "cottage industry", ie squatters, displace hill sides, and water sheds, the NAV should shoot up 3-7 Dollars, (85% +), overnight.

But before the champagne dries from the shirts of leveraged investors and a few Fidelity fund managers, take your money and run. Why? Copper prices have sunk. This mining region requires copper to be sold to subsidize operations.

This is a very speculative holding and I would give it 2-3 months to play out. Make sure you have a stop-loss in place. I own this stock.





Note: The stock picks I review will include long or short positions as well as duration. I may not always update a position change if the time duration was accurate in the original review. Some of the stocks I review I own in my personal account and will always state such conditions. This site is not intended to replace one's own due diligence in researching stocks nor is it a substitute for advice from your financial planner.

Posted by Vestor22 at 15:21

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JESSE LIVERMORE
"A trader gets to play the game as the professional billiard player does-that is, he looks far ahead instead of considering the particular shot before him. It gets to be an instinct to play for position."

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+ Crystallex: KRY Treading Water
+ READ THESE HEADLINES
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JESSE LIVERMORE
A man does not have to marry one side of the market till death do them part.

Crystallex International Corp: Take Your Money and Run

I wrote the article in response to bloggers and some hedge fund managers that feel the "old" NAV of 3.50 was supported by the fundamentals in the company and present gold prices,(i.e. Cohen and others). My point was to show how much we really depend on local politics in this not so perfect world.

Crystallex has no property to be seized nor do they have but a handfull of paper pushers on site.

Crystallex International Corp: Take Your Money and Run

You have offered 2 variables that reflect too much risk. 1. Hold out for permit 2. takeover bid

If either have a possible "no" then you have 4 different outcomes.