Chancer

Lithium: Bolivia Wants Partners, Not Pillagers

Bolivia is good for just one thing only.

If you retire in the USA, and:

Your Social Security pays $2,000 per month.

Your Medicare costs $1,000 per month.

Your real estate property taxes are $10,000 per year.

Your electric bill is $1,000 per month.

Your water bill is $200 per month.

A loaf of bread costs $10.

A gallon of gas costs $20.

You can move to Bolivia and get all those things cheap: groceries, housing, utilities, healthcare, and taxes.

And if you have to get 24 hour nursing care or move into a nursing home, that is cheap too.

Lithium: Bolivia Wants Partners, Not Pillagers

Quote: "At a future stage, Bolivia plans to develop a battery plant and perhaps, in conjunction with foreign firms, battery-powered automobiles, but this will require an investment of US$1 billion. .... And he was clear that the Bolivian state would own the lithium industry, while foreign companies need to accept the role of “partners not owners.”

Do foreign companies want to be partners with the Bolivian socialist government?

Do companies want to manufacture batteries and autos in Bolivia, and have export transportation shut down for many weeks?

That's what happens when Bolivia has a nationwide transportation strike. They block all the roads. The government does nothing to keep the roads open.

Bolivia has no ocean port and no through railway. Export transportation moves by truck.

I predict that Bolivia's lithium will remain in the ground. Foreign companies may do a little R & D and "explore" Bolivian opportunities. But in the end, Major foreign companies will not remain in any long term deals with Bolivia.

Ten Stocks for the Next Ten Years

I have a problem with CDE, because their management has a really bad track record of trashing shareholders with huge dilution followed by a reverse split.

I consider it a problem to consider management like that for a long term hold.

Coeur d'Alene: Mining for Money

CDE's management has a really bad track historical record of treating shareholders badly.

They diluted shares so badly that they had to do a 1 for 10 reverse split to reduce the excessive number of shares.

The really big problem with this is that management's that do this are usually doing it for personal gain with all the stock options they give themselves, and using shares to finance the company, including their own fat salaries. Once they have done it, they tend to do it again.

I always vote against reverse splits, because the normal history is for the stock to decline back to the pre-split price after the split. This can be a quick fall or slowly over time. So far, CDE has resisted that trend due to the price of silver.

The question is: which pull will win for CDE? The increase of silver's price or the trend for reverse split stocks to fall in price.

Although CDE may continue the current uptrend, I believe that sooner rather than later, CDE management will start diluting the
shares again.

When you buy a stock, you often take a chance on management, if you have no negative information. But when management has shown itself to behave badly, against shareholder interests, I would stay away from the stock- except maybe for short term trading.

Coeur d'Alene Mines: Some Risk, But Big Reward Is Possible

I own only a few CDE shares which are "now" fewer still. I consider my original investment to be a mistake, and do not expect to breakeven. CDE has diluted in the past. I believe the major reason for the RS was so that CDE could continue diluting shareholders into the future, which is why I voted against the RS, as I almost always do on reverse splits. I would expect a significant dilution offerring within 6-12 months. The only reason that I have not sold is that I do not need the tax loss, and there is a chance (very slim) that the share price might increase somewhat.

Re. Bolivia, those who have spoken about the risk are correct. I have lived in Bolivia, and I understand the political and business climate there. Contracts and the rule of law are not respected. Bolivia is on a path to confiscate large ranches right now- especially in Santa Cruz province. They have nationalized private mining and energy properties in the past. Right now, Bolivia appears to be cooperating with mining companies (because the government is broke), but that could change overnight.

Invest in Gold Miners, Silver Miners, or Both?

I believe CDE is doing a 1 for 10 reverse split- meaning for every 100 shares, you will now have only 10. My policy (cast in stone) is to vote against ALL reverse splits; and against stock compensation plans for management's that perform poorly.

HL did a horrible deal on their refinance. Management was sleeping, when they could have negotiated reasonable financing. Instead, they screwed shareholders. HL's management should all be fired.

Coeur d'Alene Mines: Bullish on Silver and Its Liquidity Is Fine

Biggest problems with CDE are:dilution, dilution, and dilution!

Coeur d’Alene Mines Corp. Q4 2008 Earnings Call Transcript

CDE is such a loser, IMO.