Rumblings and Thoughts
posted on
May 09, 2011 09:38AM
Crystallex International Corporation is a Canadian-based gold company with a successful record of developing and operating gold mines in Venezuela and elsewhere in South America
Trying to be neutral to positive is difficult. My rant a few days ago about a future plan pretty much definitely shows I am Bearish. Would I like to be Bullish? Yes, but it is difficult with this stock.
Anyway, there is some information I have gotten in some PM's that might be of interest to this board. Also, there is some DD I have done that might be of interest.
First the PM stuff - Might be considered somewhat Bullish depending on what one might want to read into it. RF apparently recently returned from Florida. Apparently, RF is scheduled to travel to China this week, and will return the third week of this month. Personal or Business? There was no further information on the reasons for the travel as, when questioned, it was the no comment thing. Also, I did not confirm these trips.
On my DD stuff - Might be considered Bearish. You may have seen Rmbonger's recent post about delisting. I also wrote the company, for the first time ever, asking about information on delisting. RM confirmed to me his take on delisting, much the same as what he wrote to Rmbonger. RM's take appears to be that KRY falls under "NYSE" rules even though it is listed as an "NYSE Amex" stock. When the stock was halted a month ago, I erroneously posted the "NYSE" delisting rules. No_Bear followed up with his analysis and posted a link to the "NYSE Amex" delisting rules, which are somewhat different than "NYSE" rules. This is because NYSE/Euronext is made upof several distinct Enchanges. I have reviewed the "NYSE Amex" rules.
One notable difference between NYSE (appeal fee is $20k) is that there is no fee to appeal to NYSE Amex. No fee, so nothing to lose and might as well appeal. Another difference is that NYSE Amex requires a "Plan" submittal within 30 days, while NYSE schedules a "presentation" meeting at the next available open date. RM has replied as though KRY falls under NYSE rules, rather than NYSE Amex rules and that there is a presentation meeting towards the end of May, although I could not get a specific date. I have requested clarification from the Exchange, but have not received a reply. I imagine the exchange is busy with numerous issues, although it took about seven days for the Exchange to determine the KRY deficiency.
Right now, going by the "NYSE Amex" regulations, the max for Plan submittal is 30 days from notice, which made Friday, a few days ago last week, the last possible due date (could have been sooner depending on what the deficiency letter required). If the Exchange finds the Plan unacceptable, KRY is delisted. If the Plan is accepted, the Exchange has 45 days to notify KRY. I figure if there is no notice from the Exchange for 14 days or so (May 20), the plan was likely accepted (but no guarantee). Realistically, anytime beginning Monday (today), the stock might halt and we are painted Pink.
That is if the NYSE Amex rules apply.
Also of concern is that large institutions, the folks I like to call "The Big Guys" have their own rules. Typically, stocks under $5 are considered "penny" stocks so larger outfits avoid them. This is why Citibank is doing the reverse split today. Some Big Guys are ok with "penny" stocks. But usually those Big Guys will draw the line at OTC/Pinks. It seems OTC/Pinks have a much more difficult time receiving credit. Here is an opinion piece about delisting:
http://www.investopedia.com/articles/02/032002.asp
Be aware and perform DD. These are rough times for the stock and sp.