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I have contacted the Pink Sheets market at issueservices@pinkotc.com asking for contact information of their compliance department so I can lodge a formal complaint of my own as a shareholder. When I get the email address I will post it.
Rockroby
In your question to me, could you please clarify or be more specific?
Thanks
Rockroby
There is no automated system for the Pink Sheets market. You have to call your firms trading department and have them make the call to that group of market makers, if you can call them that.
Bluejay
Is it possible that the company itself put these stocks out their because their was none to buy?I think someone from the company should contact the Pink Sheets compliance department and lodge a complaint concerning the trade of the 50,000 share block of OSTO(Sixteen to One Mines OTC symbol) stock at $.0001.
Possibly, someone could even contact the SEC and lodge a complaint against the broker that would execute such a blantant and questionable transaction representing a customer supposedly in good faith. Good luck with that! I have a complaint in with the SEC dating back to August of 2007 and am still waiting to hear from their lawyers who either did, or did not investigate my claim.
The SEC is a pathetic organization. Recently, in front of the Congressional Financial Services Committee concerning the Bernard L. Madoff multi-billion dollar ponzi scheme matter, representatives of the SEC looked like a bunch of scared chickens just worrying about their own skins.
Not once did I hear any apologies to the families of, at least, two men who committed suicide for losing their entire fortunes as a result of the shabby to no action by the SEC staff of a submitted detailed complaint spelling out what Madoff was doing to his investors.
Welcome to the lawless land of America where cheating, stealing, lying and ineptness by regulatory bodies is the order of the day. Add all this up along with bankers who who are currently stealing from Americans with a straight face and one doesn’t have to wonder much why our country’s people consume more mind soothing drugs than any people on the planet.
When I was on the Pacific Stock Exchange as a bond and stock trader I saw orders come down to the floor that were questionable. I would immediatedly go back to the source of entry by asking some questions as to bond or stock description or to “check price.” If it were a market order and no bids were available, I would direct the broker representing the customer order to a better market or just go out and find a buyer with a reasonable price. Sometimes, I would call the treasurer where bids were lacking and ask if they were interested in putting in some orders or knew of anyone that might be interested in doing so.
In all my years of representing customer orders I never butchered an order for any reason, I just wouldn’t do it. I like to sleep at night.
Someone from the company needs to lodge a complaint against the Pink Sheets trader and the executing broker who committed this breach of trust. This matter needs following up as it obviously hurts the seller along with the shareholders of our company.
Tried all last week to bring it up,even put in bids for $1.05 and it would not take.That was on Etrade will try UBS this week.
I bring it up to a quarter and someone goes in and drops it down too .0001 not sure what is going on.
Etrade is a lot of fun,gives you more control & doing well with most of my gold stocks,Ameritrade is good too,easy to open and easy to get money in and out.
Lets get in their this week and get this stock moving up,I think mining companies are starting to get looked at and some have a lot of movement that may never produce,not sure whats going on with the Sixteen to One,even Sutter,Emgold & Bullion River get movement every week.And look at Western Goldfields they will produce 150,000 ounces this year.If this State would open up 100 gold mines & go after are oil and natural gas we would not be where we are today(bankrupt)
Rotten politicians and now Nancy wants to do to rest of the Country what her and her kind have done to California.Crime of the century???
50,000 shares trades of our stock trades in the Pink Sheets market for $5.
There is interest in the sale that took place on February 12, 2009 of 50,305 shares at $.0001 a share ($5.03) beyond my expectations. I just sent the following reply to a well wisher who took notice of the sale and wrote me. I answered as follows,
Dear Alex,
Thanks for your comments. I’ll send you (as an insert) hard data about the company and its plans. This information is on the web site. Pay particular notice to the real value estimates. The assessments were completed before the housing collapse. I have no idea its affect on the company’s fee simple ownership for standing timber, water rights, large parcels of desirable recreational land and properties that have produced two billion dollars of gold.
There are no reasons for shareholders and/or their stockbrokers to behave so unfamiliar with the Sixteen to One as you suggest, “someone thought to unload your stock at any price” has any merit. I am experienced adequately in both our company and the machinations of stock markets to say this. Something else is going on.
I truly appreciate your letter and hope the following is received with the positive energy it is sent. You write that you are not a shareholder (as others have who also express your sentiment of interest) but who may become “a possible future stock holder”. I ask you this. Would you be in favor of some individuals or companies conspiring to trash the value of Sixteen to One shares? The current prevailing attitudes about this “trade” last week are: destroy the share price and even the company or tax evasion.
I interrupted a Google search of the United States Treasury division of the Internal Revenue Service to answer your letter. I am planning a letter to the tax criminal department. The tax evasion scenario is simple. Party A sells 50,305 shares for $5.00 to Party B and writes down a loss, which offsets some of the billions gained from short selling the market. The government stopped short selling (odd if it were not a concern). I forgot an important point; Party A and Party B are friends so no real exchange took place. I think it’s called a conspiracy, may even be illegal.
I disagree with some of your other observations but will enjoy a discussion. Write me again because it may be mutually valuable. Michael M Miller
++++++++++++++++++++++++++++++++++++++++++++++++++++++++++++++
I can tell in the brief time we all have become aware of this public injustice, it has legs and must be pursued from many fronts. This may be only the tip of an iceberg. Use this Forum or write me directly if appropriate.That is good news, Mike, that Origsix does not owe any money to the banking sector. Thank you.
To answer Hans’ question in the last entry: origsix owes not a penny to any bank. Its debt is with private parties, most of who are friendly as well as supportive to its success. I thought I might have been alone in distrusting the stock market game. After reading Hans, Bluejay and Rockroby, my concerns are not signs of paranoia. The pit is probably much deeper that we can imagine.
When I was seeking shareholder proxies between 1976 and 1983, several times a shareholder would tell me, “Well, everyone should have a worthless gold certificate hanging on the wall.” It was said with a smile because each and every person I contacted during that proxy battle for control believed his or her Sixteen to One stock was a prize worth keeping. I heard some wonderful stories about the mine.
The only problems I see in holding certificates are knowing where you have them and taking them to a broker if you want to sell. Neither seems too difficult for the benefit gained.
First of all, I agree with bluejay’s analysis of the state of Stock-Dealer’s competence and morale.
As the old Romans used to say two thousand years ago: “Judge a man by what he does, not by what he says”. Especially people like Bernard Madoff.
Maybe you should dismiss the plan to reenlist OSTO-stock for trading at a stock-exchange and save all the related expense along the line, Mike. Maintain an informal trading platform for shareholders on the company’s website.
If company-websites would have existed 100 years ago, stock-exchanges would have never been needed and would not have been created at all. And if they disappear again, it may be a change for the better. The world doesn’t need the Bernard Madoffs any more.
Is Origsix still carrying a loan from a bank that is secured by physical gold?
Although it is a sad decision to make, I would suggest to sell the amount of gold that is neccesary to cover all loans outstanding while the market is still strong.It is not that I am worried about declining values of gold right now – I am worried about the recklessness of any potential future liquidators who might size Origsix assets and sell them for a piece of cake.
As long as Origsix owes money to the banking sector – and I don’t care what specific banks are involved – the title to the loan may be transferred from one bank to another bank and in the end to some liquidator.
Eliminate that risk, Mike, if it still exists. And don’t worry about selling too cheap – we can always go back and dig up some more gold as long as Origsix owns the mines.
First of all, I don’t believe DTCC is a reputable organization. They can’t even get sellers that fail to deliver sold securities(naked shorts) within 13 days and don’t require a buy-in to replace shares that the seller won’t produce that the buyer has already paid for. Otherwise, they perpetuate the on-going phantom sales scheme by lawbreakers which dilutes a company’s share price.
Patrick Byrne of Overstock.com(OSTK_OTC) has been spearheading a reform movement in court for years in an attempt to protect shareholders rights. To get to the point, Overstock.com had 19,000,000 shares outstanding and according to buyers, they owned from 35,000,000 to 40,000,000 shares the last time I checked. Someone, unknown to the company, was manufacturing about the same amount of shares that the company originally issued without any serious protests coming from the NASDAQ or the DTCC. Do you know why? The more shares that trade, the better it was for business.
This is the sad state of affairs that law abiding investors find themselves in today. The naked shorts game is to pound down the share price of specific companies thus inflicting damage on shareholders. These crooks do not sell naked shorts in an up market. The only exception is that some bullion banks do this in a rising gold market as agents of the Treasury.
The bottom line with me is, if someone else is holding your assets your risk exposure is magnified by their potential incompetence. Why take the chance?
The day has come and gone where I feel comfortable knowing that the FDIC or the SIPC will bail out any incompetents for losses that they create with my trusted securities or funds on deposit with them.
The IRA’s and ROTHS etc. are sterile stock holdings. You can’t get your fingers on them ever! The shares of these plans are suppose to be segregated but you would have to hire an attorney to PROVE that their custody is totally safe. Who do we trust?
Just take a look at what just happened to Bernard Madoff Investment Securities. Their ponzi scheme was just revealed that cost investors $50 bullion. They kept several sets of books, had falsified documents and lied to regulators.
We live in times of shameful widespread corruption. Your valuables should be intrusted to yourself in a well fortified home safe.
Ever wonder what happened to all the small denomination gold pieces like the 1/10, 1/4 and 1/2 ounce gold coins that used to be offered at coin shops? They are mainly in home safes now waiting for whatever tomorrow brings.
Do not leave your securities with the broker, order them out as soon as you can.
Check out this article:
The experience of Rockroby is not uncommon these days. It is happening all around the globe and in large numbers. Large numbers of affected customers and large numbers of affected balances.
If a bank comes under serious pressure to maintain a certain core capital ratio against it’s loans outstanding position it will first try to shore up it’s core capital.
And if that doesn’t work any more, outstanding loans will be called back. From banks and from individuals. Upon maturity or on sight. Whatever is available will be grabbed to reduce the pressure.
As they say over here in Europe: “Banks are handing out umbrellas as long as the sun is shining. And as soon as the first rain-drops appear, they are recollecting the umbrellas again.”
There are still many umbrellas out there that have been handed out to financial SWAT teams called “Equity Funds”. It is hard to recollect those umbrellas without driving the Dow Jones below the 4000 level.
But many Equity Funds are making the same experience as Rockroby right now – if that is any consolation at all.
When this market crash happened I owed U.B.S Financial about $1,800.00 and they called in my marker giving me less then 24 hours to come up with the cash,so I told them to sell all my National Lampoon stock.It was not enough to cover the $1,800.00 so without asking me or even telling me they unloaded 3,000 shares of my OSTO stock for .05 cents,I had other stock they could have sold and am not sure why they did it but they did.I can not get it back for that even though the stock sits at .02 cents right now,will put in bid’s for a higher amount’s as soon as my Christmas bonus comes in,short on funds right now.
Thanks Mike for letting me hike down into Kanaka Creek over the Summer even though I could not do much with the other miners in their,will be sending a care package before Christmas & found some decent placer gold this year up around the Merced River,will be back up looking for gold as soon as my rush is over.
Wishing you all the best this holiday season.
CraigTHE FOLLOWING NOTICE WAS SENT TO ME TODAY FROM A SHAREHOLDER WHO IS ALSO A STOCK BROKER. What does this mean? My comments begin below the notice. Your thoughts are encouraged. Thanks Hans and Bluejay for your recent contributions.
“Beginning Jan. 1, the Depository Trust Company (DTC) will provide a Direct Registration System (DRS) statement in lieu of a physical certificate for all DRS-eligible and participating issues that request withdrawals-by-transfer (WTs). For such DRS-eligible and participating issues, DTC no longer will permit participants to request issuance of a certificate on the WTs instruction. The final date for certificate withdrawals-by-transfer is Dec. 30, no later than 3 p.m. CT.
For client protection and efficiency, the securities industry has been moving toward eliminating physical certificates. The DTC recently filed the proposed rule change with the Securities and Exchange Commission.
DRS is a book-entry system that enables investors to register their shares electronically with the issuing company or its transfer agents. Instead of a paper certificate, investors receive a statement of their holdings. In 2008, all of the major and regional exchanges in the United States mandated that DRS become a listing requirement for all issues.
An investor will still be able to request a physical certificate by taking the investor’s statement directly to the DRS agent for conversion to a certificate.”Have you ever wondered how the brokerage businesses back room handled the massive increase volume of transactions? My doubts about their abilities began years ago. A growing concern was they are not able to do it. The result is that while an individual client may have accurate records, transfer agents may not. I encouraged our shareholders to take physical ownership of the stock certificate for mutual protection.
Why would a public corporation be concerned? Naked shorts! Short selling has brought small market cap or modest volume trading companies much grief, probably some large ones as well. It is proven that selling a stock down is more rapid and easy than buying a stock up. There are rules about short selling or there were rules when I did some short selling shortly after graduating from UCSB in 1965. I always may a profit short selling and can’t say the same about my long positions.
Working with Original Sixteen to One Mine, Inc to get it approved for the Pacific Stock Exchange between 1987-89 and afterwards paying attention to its stock activity, I realized how the stock market works from the view of a corporate president with a substantial holding and long term interests. I also realized how traders could destroy a very good corporation. Today I may be the only corporate executive who hand signs each share certificate; however once shares trade in depositories, I lose touch with our owners and market activity.
In order to short stock the shorter was required to hand over the number of shares, which were borrowed from someone else who actually had the shares to sell. Do you believe that this requirement was actually performed? If so (and I do believe that for many transactions someone’s account was credited and someone’s was debited shares) what happens when the person whose shares were loaned to cover the short wants to sell his shares? Does the broker borrow from another shareholder? It has been my opinion for years that with such large volumes of trades, the there are mistakes and now we all know that no one is really watching.
I believe that the public should demand that public companies continue issuing certificates of ownership. Why? To prevent fraud or manipulation. America needs a stock market industry. But it must have a level playing field and the transparency Americans have sought for most of my life. The market resembles the casinos in Las Vegas more than a capitalist’s tool.
Finally, as a director and president of a SEC reporting company, I will be the first to get the blame for a crashing stock price even if the present circumstances remain unchanged. I remember going to a two day gold seminar in New York as an invited guest by Donaldson Lufkin and Jenrette when the president of Barrack blasted the US stock exchanges and specifically related that traders could bring shareholders a loss that has nothing to do with the management or results of the company. I remember it well.
Thanks to the detective work of a shareholder (stock broker as well).
If you are tracking trades on that ubiquitous phantom gray market, the source of stock may be from the Bank of the West, which matched some buyers of company shares at prices ranging from a nickel to thirty cents. If this is typical of how fiduciary holders treat the assets of others or even their own, incompetence is ubiquitous permeates the brokerage industry.
I have always encouraged shareholders to take their shares out of street name and will continue to do so. The Bank of the West had 22,500 shares according to its SEC filing in June and zero in its filing in October.
Thanks again, Mister Detective for your curiosity.
The following company’s provided shares statistics look suspicious:
AngloGold Ashanti
GoldFields
Harmony Gold
Agnico Eagle
Pan American Silver
Bluejay, The quotes were found on the NYSE at http://www.nyse.com/about/listed/1cddata.html?ticker. We had to research the company web sites of some on the list. Please tell us any mistakes. As Oliver Wendell Holems proclaimed, “Truth, when not sought after, rarely comes to light.”
The entries were listed on 11/12/2008 between 10:30am and 12:20pm. The ones from 2007 also came from the web site.
Mike
Just so everyone understands, what is your source for these statistics? The reason I ask is that I see some errors. In addition, if the source is using the 2008 year for comparisons then why isn’t a specific date being applied as we are still in 2008.
A REVEALING ENTRY.
I write to counter generalizations about companies in the Gold Sector and specifically our Original Sixteen to One Mine, Inc shareholder value. I recognized its value thirty-four years ago. Considering stock splits of ten for one and three for one the owners in 1975 (USA allows gold to go free for Americans) our equity has increased over sixty times, not 60% but sixty times. Capital appreciation is far from over.
This revealing entry can be found under NEWS, put on the web site today. This chart represents a twenty-month picture of many things. I realize that many successful people do not own gold shares, have little understanding how to evaluate gold companies (with good reason) and my efforts to enlighten have failed to contrast the Sixteen to One with others in the Gold Sector. My failure was recently confirmed by an e-mail I received from a writer in Germany, who pointed out that I should sell our gold collection to shareholders because they have not been rewarded. Yes, we have! Refer to the chart for a gut check into the Gold Sector. By the way I have kept data like this and more for years. Many companies no longer exist or were merged into other companies for token compensation to shareholders or nothing.
Market capitalization is a formula tossed around in stock parlance. Take the outstanding shares times the price and you get a market cap for that company. For example, Newmont Mining Corp, a favorite safe haven for stock brokers to recommend to customers, who want a gold position, increase its shares and lost price. In twenty months shareholders lost $8.24 billion dollars of equity. How about one of the junior gold companies, Coeur D’Alene Mines. Its shareholders lost over 70% of their value during the same time. I don’t know what happened to Gold Fields Ltd but shareholders took a beating.
What happened to our market cap or shareholders value? Nothing. This is not necessarily good or bad. It just is. Much can be used to analyze an investment; but my German friends observation is incorrect. Our shareholders also were not diluted, a very important consideration for future earnings. Am I happy about the financial results over the past twenty months? Absolutely not. An opportunity exists for this gold company for not only significant market cap increases but for liquidity as well. Someone just has to get serious and check us out.
Good luck with the chart, GOLD COMPANY SHARES under NEWS.
Yes to your questions (see below). Management is willing to accept funds and secure those with equity and settle by offering gold bullion at a percentage discount to spot price.
Questions to Management:
Could OrigSix legally create preferred stock that entitles the holders of such stock to a first right to purchase new findings of gold from the mine at a given strike price or at a market price?
Would the management and the board be willing to take such action?
If yes, I would be interested in such stock.
Hey Kyle – Thanks for going to our site, but I’m not sure why you couldn’t leave a note? There is a pull-down menu at the bottom left that opens up another field to fill out and submit your message. Maybe your browser is not up to snuff? Our website has no problems sir. 🙂
Greetings – As a longtime follower of the 16/1 and frequent visitor to the Alleghany region, I must say I have high hopes your operations find the necessary resources to continue its undergtround operations. My background is in the advertising and marketing sector w/25+ years experience and a staff of 12 ranging from designers, marketing managers, production artists, media strategists, copywriters, etc. It sounds like a little PR and a direct marketing campaign is in order. Understood that funds are tight, and there may not be any “budget” for such eforts, but maybe my company of Zukor Design (www.zukordesign.com) here in Southern California could help. There might be a way to do it in trade or stock options to keep the cost manageable without drawing down real dollars. I also have a personal interest in mining that couldn’t hurt such an endeavor. Not that I have any experience doing the hard-rock drilling, blasting and mucking, but my passion for the industry runs deep as a whole. Mineral collecting/reselling as in jewelry and sculpture are my focus with education to new buyers of the trade being the key.
On another note, with your goal (Mike) of trying to gain funds for the 16/1 to get back to mining on a larger scale, may I suggest you break the massive $3,000,000 collection into smaller lots? Maybe this has been suggested before and tossed aside as a bad idea (if so, my bad) but after doing a fresh read on your forums, it might be worth considering. I remember this collection was “available” a few years back at $1,500,000 and it didn’t sell? Sure the cost of the raw material has more than doubled, but i just don’t think there are many buyers with $3MIL in their wallet for such things today. I’m not suggesting the combined worth of the “collection” is not correct, only that finding a buyer (or group of buyers working in tandem) will be tough to land. And with time running short on the mine’s operational costs and outstanding liabilities, a reassessment of selling strategies my be in order. I for one have many contacts who would step forward today in closing deals on select pieces and/or smaller groups. Sure, it would dissolve the “collection” as a singularity that’s magnificently rich, and an extensive tribute to the 16/1, but if it’s dollars you need, there may be a better way to achieve this goal. As a matter of fact, I wouldn’t be surprised that if it were sold in small groups and specific specimens, the net proceeds would surpass your $3MIL target by a long shot. Sure, it would take more effort to deal with multiple buyers, but it sounds like you have some time on your hands to manage such transactions.
Anyhow, I’ve never posted to this forum before but do keep up on your team’s efforts. I figured it was time to drop in my 2? and sincerely wish you all the best. Feel free to post a reply here or contact me directly as you see fit. All the best!
Dear OakRockRanch….
I checked out your website and unfortunately – I couldn’t even leave you a note. Your website needs some help too. I agree the 16 to 1 could use some help in the marketing but a website that has problems of its own isn’t the best place to start.I think most of us know the mine needs a grubstake to get back underground and start mining again.The stock is easy to buy now I can get shares through E’Trade or U.B.S. I put in a order for say a thousand shares at .75 cents or better and get it for .35 cents,what I think is happening is that guy who bought thousands of shares for less then a nickel is selling them for thirty five cents & once they are gone & the mine starts blasting again it should go back up to .75 cents or more.
Unlike other mining companies the Sixteen to One Mine only has thirteen million shares out & I value the properties at at least twenty million without the gold.
Look at Goldspring in Nevada they are sitting on gold and silver worth billions like the 16 to 1 but have 800 million shares out so their stock stays around 3 cents.
Once gold goes over a thousand a ounce”and it will”more people will become interested in gold mining companies & if the gold collection is sold and you get back to mining I think the stock in this company just might go crazy & the seventeen million that can still be bought will go fast at well over a dollar.
Mike you might want to try Westamerica again a lot of banks lost big time in this housing mess and are looking for other things.
Good luck todayWho is writing or saying it is a quick fix? The financing, and really financing ruthfully is the plan we are following…sell our priceless gold collection (inventory). It is basic capitalism or business, nothing more and nothing less.
Our assts have increased while we took on more debt last year as the crew followed the crumbs of gold. Our choices of where to mine were severly limited by the two week need to “make Payroll”. That expense stopped in December. The inventory has been managed to net the highest amout of money possible, no quick moves to just sell it at spot, as some suggested awhile ago.
Personally, I will be delighted when our company has a public market. It won’t be tomorrow. Anyway, most of the junior gold copmpanies are searching for money while share languish in a lack luster market. It seem as if oil is the object for speculators to play the currency game not gold.
So Ryan or Bluejay, explain the value to shareholders of AngloGold the rights offering of AngloGold (see entry below). Help me out here.
I can offer some insights about the industry wide lack of interest in the smaller mining companies and will next week. We have about 200 people coming to Alleghany tomorrow for the meeting. As always, I appreciate the comments made on the FORUM. Oh,Steve, I really could use a vacation, but a vacation is in my future once one or more of the business prospects I continue to develop is realized.
Scoop, thanks for the info. I must admit that I’m still confused. We continue to focus on owning three mines but have displaced all the miners. We have a history of producing awesome pockets but don’t have the manpower to produce. We have a gold inventory greater than the liabilities but are delinquent on our taxes. We say that we’re in a position to respond when investors take a fresh look at making money in gold yet we’re not concerned about our share price or view ourselves as a promotion enterprise.
Seems like we’re in a classic liquidity trap of property rich but cash poor. Seems like the largest shareholders are worried about dilution instead looking at ways to raise fresh capital to accelerate development and unlock the value we all agree is there. Maybe we should look at what Tejon Ranch did a decade ago with their rights offering to begin their property development or what AngloGold is doing this month with their rights offering to eliminate their hedges and expand development.
After reading your input, I accesse3d the AngloGold web site for the sole purpose of reading about the rights offering you suggested we implement. Here is what I found (and it was not an easy quick search).
A rights offering was prepared on March 22, 2006 for 10,300,00shares at the closing price on NYSE of $48.33.
Shares outstanding on February 28, 2006 were 265,096,732.
The web site quotes share price today on NYSE at $32.08.
Do the market cap comparison. What do you think about the successful strategy of management in regards to dilution according to the Use of Proceeds (published)?
Using a vastly over issued corporation certainly keeps the labor force working. Personally I would not boast about an idea that the rights offering was a success. If our company had tens of thousands of shareholders with over a quarter of a billion outstanding shares, I may do what the AngloGold management did to keep the company in play with the stock market.
Let’s talk some more. We are busy preparing for the meeting Saturday. I have no info about the Tejon Ranch approach to funding. They are smart guys and took care of the owners I am sure.
We have choices and took the best one: sell our priceless gold collection. I am actively pursuing other methods of getting the working capital that we, like every mine, need from time to time to improve mining. Perhaps one of these solutions will materialize; however puffing up these real but unknown solutions at this time does seem to me like stock fluff. The major shareholders decided a long time ago that what is, is and what is a wish is not. Since we own the real deal, a gold mine that continues to operate by mining and marketing gold, we will not hype our stock. That does not mean we will not undertake a program to infor the non-shareholders about the great potential here in Alleghany and also at the Brown Bear.
Yes, we are asset rich and cash poor. Yes, we need a well-informed, confident person or persons to join us in developing our mine plan. It is a good one. I along with others are confident it will be very profitable for everyone.
Thanks again, Gotta go but tell me about Tejon.
Thanks for your questions and observations. Let’s see if Scoop the on-sight reporter can respond to your satisfaction. Please let Scoop know if you want further clarifications.
#1. You are correct. That was a typo.
#2 No, the bulk of the interest expense is for a $400,000 short term note at 12% plus fees every six months; overdue property taxes of approximately $80,000 accrue interest at 12% and some other bills in the Accounts Payable charge interest between 10% and 12%. The $400,000 is secured by a first trust deed on the mine property.
#3 The related party is primarily Michael Miller, who has covered operational expenses for awhile. The interest accrues at the same rate his bank charges for his line of credit. There are other related parties (shareholders). One is charging interest at the same rate as his line of credit with his bank currently 6.75%. The shareholders have gold as collateral. Miller is also secured with a note on mine property.
#4 During the recent and lengthy bear market for gold stock ownership, the company elected to conserve its dwindling gold inventory by placing the physical needs of the mine above all else. It terminated the outside accounting firm from signing off on the financial statements. The lack of one has nothing to do with what they might or might not say about the financial condition. To give you an idea, the cost of the last audit in 2001 was $27,800 (going up up and up because of federal legislation and specious law suits). Since the Company files as a gold producer, the SEC requires a SEC approved auditing firm anoint financials. Many qualified as SEC auditors had their errors and omissions insurance skyrocket, which is an expense that is passed along to the client. A SEC audit today will significantly increase over the 2001 date.
Once the gold collection is sold it will not be a problem to have the last several years audited. All of the financial records are being maintained exactly as they were when the company was being audited. An approved auditor independently audited year-end inventories, which were a significant figure. The last SEC auditors recommended this. The Company’s published Future Use of Proceeds includes a line item to resume audits to meet SEC requirements. Reenlisting should not be a problem that cannot be solved.
#5 The peaks and valleys, feast or famine or any other metaphor articulated to describe the Sixteen to One mine or many other mines affects exploration; however pundits acknowledge that the Sixteen to One is in a class by itself. Why? Sufficient geological data exists to support exploration. A high level of confidence for risk capital can be found because the gold has a provable history of concentrating in the richest “pockets” yet recorded. Working capital to fund a well-designed plan is the key to the Company’s success for over 100 years. Miller and the board chose to sell one of its valuable assets to implement Step One of its mine and company development plan That decision reflects just how important the physical mine properties are as well as the unissued treasury stock. Gold is offered for sale to get working capital.
#6 A convertible debenture is a grand concept and has been discussed over the years. It will not work along the lines you mentioned. There are 1,640 shareholders, but 1600 own less than thirty percent of the outstanding shares. The numbers do not support a pro rata offering.
The above represent factual information in answering the questions from the last posting. Scoop wants to stray into some opinion reporting.
1. In following the operation of the Alleghany mines under ownership of Original Sixteen to One Mine, Inc from 1911 to 1958, management did a fine job of controlling its expenses during some difficult times in the gold mining business. There was little or no shareholder dilution or loss of real estate. In fact some very good properties were acquired when other operators decided to quit the business. The slippery slope of a pending Gold Sector valley began shortly after WWII and bottomed out in 1974.
2. Current management (since 1983) has experience the world wide Gold Sector swings as well as some swings peculiar to itself. Right now is not a time of worry. It is a time of decision. The gold inventory value exceeds the liabilities, which is why a gold sale is the current focus. How much will be sold and at what price are questions that never go away. Priceless is how many over the years have reacted to Sixteen to One gold.
3. Therefore, “we seem to be at a critical juncture in the log jam” (see below), is not an accurate perception of Company status at this time. It was more critical a year ago when the mine plans to open the 1000 foot level and search for some short term targets were started.
3. In response to Question Number 6 below: entering an equity position in a company is a choice, usually a logical one based on all available data at the time of purchase. The same goes as a seller exiting equity ownership in a company. It depends on many factors: size of investment or speculation, expectations, length of time for development and foremost, opportunity to play. If there is a better risk/reward speculation than betting on the Sixteen to One mine, play it.
4. The Company purchased three historically valuable mines over the last dozen years. It is doing what a gold mining company should do rather than what a gold stock dependent company does. It is in a position to respond when investors take a fresh look making money in gold.
Good morning. After reviewing the annual report and proxy statement, I came up with a few questions:
1. The 2006 EPS is listed as (.001). Shouldn’t it really be either (.009) or rounded to (.01)?
2. We show 2007 Interest Expense of $(106,207). Is nearly all of the interest expense attributable to the $677,598 Due to Related Party? If so, the interest accrued is somewhere above 15%. Is that directionally correct?
3. What are the specifics of the note due to related party? Is it secured by a first lien on all or some of the properties? Who is the related party?
4. We no longer have our financials signed-off by an outside accounting firm. While that in and of itself doesn’t bother me, it presents a worry that (a) we’ll have an even greater hurdle to get listed on an exchange and (b) one of our directors is a CPA yet we couldn’t find another CPA to sign-off. Is it that any impartial accounting firm would give us a “going concern” warning given our lack of liquidity?
5. As for the lack of liquidity, we seem to be a critical juncture in the log-jam that has been building for nearly the past decade. If lay-off notices were given in November, we shouldn’t expect the mine to provide liquidity in the short run since the exploration is on hold. We must go to the financing side of the balance sheet to provide the liquidity.
6. To raise funds instead of continuing to offer common stock to a single large investor at $1 per share, why not consider something like offering convertible preferred to current shareholders? Because of the lack of liquidity in the common, it is hard to determine what its true fair value is. A preferred or convertible debenture offering could be structured as something like 1/25th of a share offered for every common held, priced at $10, and payable in kind annually at some rate between 5 – 10%. The math could be worked to figure out how to raise the level of cash the company thinks it would need for a 5 year project. Something like this has to be figure out since no logical person will buy a block of new stock at a $1 per share when he can fish on the pinksheets and grab existing shares for far less. Clearly the company needs liquidity since in its current state, nothing will change.Somebody named Curtis Davidson sent a note using “feedback” about a bid to buy stock. He did not provide a return e-mail address. Curtis if you see this message please contact the corporate office. corp@origsix.com or call 530-287-3223. I am not sure how you submitted your bid but we did not recieve it and we need your contact information in order to post it.
Thanks.Have not used it to get Sixteen to One stock yet & am thinking about getting a third,,Wells Fargo because a stock broker i know & trust kinda just started working their.
………………..
Thusha
http://fasttrackitc.com/sp/I had no trouble today picking up 1,500 shares at .40 cents took less then 1/2 hour after i called.
Will start getting more as soon as I take care of my back taxes I now owe the IRS.
Good article on California gold in the new Gold Prospector magazine & in the mining the internet section the Sixteen to One has their own little article.
The gold collection has been sold before,no one wants to see it go,the good thing about it is when the new shaft is sunk a lot more will be found.One of the main problems is that there is seldom a “firm” bid/ask with this otc/pink sheet trading. Some of this stuff is still done over the phone, and a lot of the time there is no quote unless someone is requesting a bid/ask.
I work at a nationwide broker/dealer (anonymous for now) and have researched this a little, and spoken with Mike about it. It is hard to buy or sell shares with the lack of market makers, no automatic executions, and very vague bid/ask quotes, inaccurate trade reporting (my opinion), etc. etc. I was able to buy some shares in the .30-45 range last summer, but only 500 or 1000 shares at one time, and was not very easy. I have not tried to sell any. It is barely worth messing with this, in my opinion, unless the company can get listed somewhere like the Amex. If you buy or sell shares on this website, at least you know it is a real market/prices/size.
U.B.S. Financial,about $25.00 for such a small amount..if i bought say 50 shares of hl it would cost double that.I have another account
have not used it to get Sixteen to One stock yet & am thinking about getting a third,,Wells Fargo because a stock broker i know & trust kinda just started working their.You can’t keep all your eggs in one basket can ya Bluejay,,,i have stuff at home too but i worry more about getting ripped off then i do U.B.S. folding.
Gold that’s what they want to see,,now if you could put a flashing add on Kitco not sure what something like that would cost.One of the problems is the market cap of 5 mil & it goes up and down when we all know it’s worth 23 mil plus without the gold/////Just put in a bid for 500 shares at .60 cents or better & i got it for .39 cents.So far these market makers have not brought it back down like they seem to do when i start buying…a lot of the other metal stocks are falling like nuggets out of my pan so a 30% increase looks good for the Sixteen to One.Not sure why they won’t take a bid for 10,000 shares at .50 cents or more,i would have got a thousand shares@.39 cents will have to wait.
Have a good Easter everyoneWhat brokerage firm did you use? What was the broker’s commission for the 500 shares at $0.39?
A shareholder sent me the following exchange:
Morgan,
How does the Grey Market work? 21,000 shares just traded at 0.27 even though I have a bid in for 0.55. And there’s a friend of mine who has a bid for 10,000 at 0.50. And yesterday two transactions went through for 300 shares at 0.25 . Who’s arranging the sell below higher bids? Should I try a large volume bid at a much lower price just to see if it goes? There’s actually a bid for 0.80 on the web site.
Thanks, SterlingHi Sterling,
Let’s say ACME Securities and Jones Financial Group both make markets in OSTO. That means both firms must be willing to buy and sell OSTO at any time during the trading day. Both firms will post a bid price at which they are willing to buy, and an asking price at which they are willing to sell. So let’s say we open the day with the following spread:
ACME Bid $0.40
Ask $0.70
Jones: Bid $0.38
Ask $0. 60You come along and place an order with Global to buy at $0.55. We have to place the trade with one of the market makers. So let’s say your order gets routed to ACME. The spreads now change:
ACME Bid $0.55
Ask $0.70
Jones: Bid $0.38
Ask $0.60Note that Jones is not required to reflect your bid, since they don’t have it. Now, someone in the world comes along and sells shares of OSTO through Jones. The trade occurs at their bid price of $0.38/share, well below the price you are willing to pay..
Hope this helps. Morgan
This OSTO stock has been haunting us for many years. Back in the days when we were listed on the Pacific Exchange the price for OSTO remained on par with OAU.
Over the years several brokers and even our market maker at the Pacific Exchange tried to track down who was doing the trading. To no avail.
My suggestion is that those who have the means should be buying OSTO so that the price will move up to reflect the true value. At the current price there is little to lose.
In other words since this ticker symbol is out there can we use it? Can people sell as well as buy? Bluejay???
Here’s my disclaimer: This is not a recomendation to buy or sell Sixteen to One Stock. You do so at your own risk. My opinions are my own and do not reflect the opinion of the Corporation.
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