Show CHEAP MINING STOCKS many fake mining companies as an alluring bait to the public advertise and offer for sale treasury stock at one or two cents a share the offer seems a tempting one and many of the unwary are quick to seize it believing that because they can get so many shares in a valuable mining property for so little money that they are getting a bargain in view of the many offerings of this character that are being made by unscrupulous companies through equally unscrupulous newspapers it is well to consider for a moment and decide if cheap stocks offer a safe and profitable investment or whether the buyer of such shares does not run a great risk of losing all that he has invested no matter whether the sums so raised by mining companies are properly employed in mine development or diverted to improper uses the object in offering treasury stock for sale by a mining company is and should be for de development and equipment purposes A certain ari amount lount of work has to be done before e the property of a company no matter how valuable and promising can hope to reach a paying and producing basis and all the way from 25 to must be expended before such a result can be attained say a company is capitalized at shares with in its treasury it if this treasury stock is 19 sold at a cent a share it will bring only if all of ato it is disposed of five thousand dollars is a tidy little sum if one desired to use it in the establishment of a candy store but it will not go far when it comes to mine development the equipment of the mine with a small amount of machinery and the sinking of a shallow shaft or the driving of a short tunnel would soon exhaust a treasury fund of this amount and then the work must be discontinued or the company must go into debt if operations are continued in either case failure lz is inevitable for the company has exhausted exha used its resources unless its stock is asses assessable mable and all comp companie anle should be when the shareholders will be called upon to pay more for their stock or lose what they have and they generally quit in disgust viewed from almost every standpoint cheap mining stock is virtually worthless and for the reason that the sum raised from its sale is entirely inadequate for the purpose for which it is intended bonds and mortgages says when you buy cheap stocks you get just what you pay for it might have added that one cannot buy anything cheap and get anything that is good the wallace mines and metals says one of the potent objections to cheap stocks raised by the easterner is that il a mine cannot be developed on cheap stock both papers are right in their premises cheap stock is so cheap that it is practically worthless excepting for the promoter who usually pockets the proceeds from such sales and falls fails to make an accounting to the shareholders for the company is generally a myth or if in actual existence the promoter is the whole thing and knows that the sale of the treasury stock at one or two cents will not develop the companas comp anys property it if it had any it is far better for the investor to pay twe twenty uty five or fifty cents or 10 a share for treasury stock in a company of standing and possessed of meritorious property than for him to accept one and two cent stock as a gift for he must know that when a company gets a price for its treasury stock somewhere in keeping with its prospective value the company has some show of developing ve a producing and paying mine the money thus invested has some show of coming back with heavy interest in paying a good price for good stock the investor has a good chance of getting heavy returns but when he invests in cheap stocks at cheap prices he might as well throw his money to the birds for in nine cases out of ten he will never see it again and would probably not have the satisfaction of even knowing where it went to the company offering its treasury stock at a good price must have good standing if it hopes to raise money by this means but thi this s very standing is a guarantee to the investor that the proposition is legitimate and therefore that the investment carries with it some assurance of profit and success the moral is that it is far better to pay nav J ct a price for something that is good th than good it to pay a pitiful sum for 8 something that i practically worthless is s |