Wednesday, May 15, 2013

Death Bed Conversion - BC Liberals Win Big

Well, there you have it folks. A historical milestone for the electorate of BC. After nearly a half century of cutting off their own noses they finally saw the light. Yes, both major parties are outhouses. One is over full and the other is out of paper. Now we can get back to business.

The first house cleaning that's required: BC-liberal-government-pushed-for-expedited-temporary-foreign-work-permits

Yup, right on the heels of a political victory comes the baggage from only months past. In the above article the Liberals have been caught red handed pressing for expedited TFW (Temporary Foreign Worker permits). Perhaps that should be WTF. The scandal deepens as CBC and others discover that those workers were charge hefty fees to get here:

And then, the galling facts start to creep in. The Jobs plan is an advertising campaign designed to hide what's really going on.
But perhaps the most blatant example of the betrayal by this government on the critical issue of jobs has been its role in promoting the use of temporary foreign workers in British Columbia. Today, our province is breaking Canadian records for growth in the use of foreign workers — more than 74,000 — while at the same time more than 200,000 British Columbians are struggling to find a job and thousands cannot get the training they need.

At some point the people of BC have to stand up for themselves. They sort of just did but will there be follow up? For those who don't know, there has been a huge investment in the Liberal party since 2005. What these investors need is stability more than anything else. They don't need a scandal plagued government.

Corporate donors pumped $46 million into the Liberal Party coffers between 2005 and 2012.
There’s B.C. mining behemoth Teck Resources, at No. 1, which gave $1.7 million.
The New Car Dealers Association of B.C. was the second-largest contributor, giving $822,814.
Oil and natural gas giant Encana, based in Calgary but with extensive B.C. operations, provided $791,270 in third spot.
B.C.-based forestry giant West Fraser at No. 4, gave $656,325, and global miner Goldcorp contributed $565,700 in fifth spot.
In total, corporate donors accounted for about 60 per cent of the $76 million collected by the party in the eight-year period.

Looking across the explorer landscape reveals that the conditions for finance have not changed. What has changed for BC is the green light just came on. Don't get too excited yet. The finance window is not going to open. So who and how are the questions of the day. CXO makes a nice discovery and the stock shoots up but will it stay there? Watch as it get walked down. Some HFT will surely turn on the computer and begin milking it. Another huge drill result may bring another spike but the end will be the same. As soon as they start the infill drilling and news is not as exciting the downward pressure will set in and people will be robbed.

What has to happen is the companies headquartered here need to be traded here. Screw the TSX.V. This exchange is dominated by Toronto. These are the same people who voted against the wishes of the West just to control the elections despite taking it over a barrel repeatedly. They too continued down this path even after they lost all their manufacturing. Only now as the hole is being filled with dirt did they finally realize what their arrogance bought them, utter obscurity. Yeah Toronto!!! Idiots, Arrogant idiots.

Remember this:
Hopkins mulls on what may occur if nothing is done. He lists two main possibilities: the TSX-Venture will be reduced “to insignificance” in less than five years; and the banks will control virtually every part of the financial business given that they aren’t participants in the venture business. In other words, “say goodbye to the public venture market,” said Hopkins.

Hopkins and others presented their findings to Flaherty, so did I. The results? Nadda, nothing, zip. What did you expect. He's in on the fleecing too. Of the three monkeys he is hear no evil. So it looks like nothing is going to change. Flaherty wants the banks in control.

In the coming months we will see a sorting of sorts as private capital moves in to the scene. I think equity will be the way of the future and pure exploration will die off. Yup, this is going to cause compression. In this recent article the facts look dismal:

A lot of the media are suggesting “Strategic alliances are growing more important in these markets and possibly finding some folks who have got money, like venture capitalists or the Chinese as they’re well aware that their cash is worth a lot at the moment”. This is exactly what is wrong, the funders are too greedy. If you thought dilution at a few pennies a share was bad... A new way of valuation is required.

I refer you back to previous articles where I expanded on why the market is being destroyed and who and what is behind it. Now, you can expect an explorer to issue billions of shares. Yes, billions. The point of forcing explorers into this absurd position is so that HTFs can hide in the volume. Snakes like tall grass.

I think you will see a large number of delistings just so that the companies can crowd source funds. I'm sure we are going to see this movement towards web funding. Once retail investors get a taste of success this new way of raising funds will take off. I think the TSX and their cadre  are playing a bluff and are about to lose. Once one single success becomes known you will see a staking rush so to speak in the arena of online funding.

I will be one of the people behind this movement. It's time to punish the guilty. You know who you are.

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