Wednesday, December 4, 2013

Regulus Resources: another example of Venture capital collapse

Here's REG's weekly chart:

This is one company that supposedly had professional, high-quality management and a world-class monster target.

And yet it still saddled the capital market with a >90% loss in 2 years.

Maybe part of that loss was Argentina's fault, maybe part of it was management's for failing to stay cashed up, maybe part of it was management fucking people over by putting out a poor resource days before a glory hole.

The fact remains, if this level of quality still managed to screw the capital market to the tune of -90%, why should anyone expect any capital to ever come back to this scene?

Which is why I suggest the goldbugs consider the possibility that, even if the juniors have conclusively bottomed, they may still spend the next 5 years underperforming the S&P 500. Because capital tends to have a good memory - at least when it comes to 90% losses.

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