Peter Hristov

Cotton & Western Min (PINK:CWRN) Disgraced by The Skull and Crossbones

by Peter Hristov February 2, 2011
2CWRN_chart.pngIn medieval times, pirate ships crossed the seas and caused havoc in the maritime law and order, carrying a black sign with a skull and crossbones. The contemporary pirates, however, can no longer be seen drifting on the waves. Instead, they are swimming through the seas of the Internet and Pink Sheets market.

On January 12, the OTC Markets handed the pirate symbol to Cotton & Western Min (PINK:CWRN, CWRN message board) for reasons, which were not specified until the end of the month. This Monday, it became clear that CWRN was caught in a promotional campaign that had disturbed the spirits of the OTC board.

CWRN has been conquering new price heights since mid-December 2010 for no plausible reason. Its volume also conspicuously surged up. Throughout this period, there was only one announcement made by the company, making a crude estimation of the future revenues of the Baja Pacific iron mine. However, it turns out that CWRN stock price was not only boosted by this news, but also by a paid promotion. Unfortunately, OTC Markets revealed neither the name of the promoter, nor the amount of money he received to popularize CWRN.

At the beginning of November 2010, CWRN announced that its Baja Pacific iron ore mine stepped into the production phase. However, CWRN has not brought out any official proof that it had produced, shipped or delivered any finished product so far.

On the other hand, a member of iHub claims he saw the iron ore stockpiles being prepared last week and set at the south-west corner of the EIT terminal. He also claimed, that a third entity had taken pictures, which could have testified the existence of the stockpiles, had it not been the security guards of Port of Ensenada who came around and forced him to erase the photos.

Finally, as the question about whether CWRN has actually produced something or not is still open, it will be useful for shareholders to cast a look at the company's market capitalization. According to yahoo finance, the company is currently valued at $106 million. In exchange for this sum, CWRN can currently offer:
  • Hypothetical future revenue of $32 million per quarter
  • A caveat emptor (pirate) insignia
  • Not a single official document about its operations and finances
  • A guide on how to use paid stock promotion service

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