Allied Nevada Gold Files Bankruptcy – WTH

By Dudley Pierce Baker
In an industry which is already beaten down with declining gold and silver, and share prices do we really need to see stories like this?

I was personally applauded by this story on TSX:ANV and the news out today on their filing for bankruptcy.

                     ANV-T           Halted             $1.08

That is the last thing in the world you want to see with your positions as they announce a bankruptcy filing. Absolutely nothing you can do!

It was only on December 12, 2014 (less than 3 months ago) that ANV went to the markets and raised $21.75 million by the issuance of shares and stock warrants. See News On Stockwatch

Obviously ‘something’ is terribly wrong with this story, IMO.

Is it the total failure of management to properly disclose the facts at the time of the stock offering, outright fraud, or just total stupidity? You decide!

I did not own shares in ANV but it has been on my watch list for possible future purchases.

I know other newsletter writers in the business who have recently (Feb. 12th) recommended the shares of ANV (after their discussions with management) and know that they must be really pissed off at the news out on the bankruptcy.

I hate these stories and can only be grateful my monies were not invested in ANV.

Disclosure:
I did not have any positions in Allied Nevada Gold, nor to I know management
or have any axe to grind, I just hate the story.