“John Bell”, 15th March 2012

The following is the text of an e-mail that I received from our mysterious “John Bell” this morning, 15th March 2012, at 0421h.

************

Pick: Titan Iron Ore (TFER)

There’s not much time before the open, so I’ll be quick.

Titan Iron Ore or TFER is my new pick of 2012!

TFER is an exploration stage mining company.

TFER was formed solely to explore a single mining claim in Wyoming.

What’s special about this claim is that it was once owned by Union Pacific Railroad.

In the 1960’s Union Pacific spent $25m developing the claim, but abandoned it because at 1960 iron prices it was uneconomical to develop.

This is actually quite common in mining. You can find a huge resource but if the resource is of a low grade – The cost of recovering it can exceed the price of the commodity.

Here’s the “play”:

On the back of the commodity boom, lots of these “historical deposits” are now being developed into mines.

Because at today’s commodity prices, what was useless 50 years ago can now be a literal goldmine.

TFER’s latest quarterly report shows they plan to raise $16.6m to spend on exploration of this property over the next 3 years.

Titan Iron Ore was formed by an experienced group of mining executives.

Leading the group is Andrew Brodkey, an experienced mining executive who is best known for being one of the key executives who grew Magma Copper from $200m to $3.5bn.

Be sure to do your own due diligence. The best way is to look up TFER’s filings on SEC.gov, you will want to read the latest 10-K and 10-Q and all the 8-K’s in between.

Remember, this is a highly-speculative pick.

While my 2011 pick rocketed from $0.70 to $6.35 – A lot of that was due to a huge short squeeze.

It was a wild ride – But it wasn’t the kind of wild ride I’d want my mother on.

So if you cannot afford to lose the entirety of your investment – Please do not invest.

John Bell

************

There are very few concepts in this e-mail that have any basis in reality or that stand up to some modest scrutiny.  

First, Andrew Brodkey did not form Titan Iron Ore, Corporation.  As examined in my blog post of 14th March 2012, Mr. Edward Mulhern was President, CEO, CFO, Secretary, Treasurer, and Director of Titan Iron Ore, Corp., when the company filed the documents with SEC announcing the reverse merger with a shell company then known as Digital Yearbook, Inc.  It was not until about two weeks later, at which time Titan executed the Assignment Agreement with J2 Mining, to obtain a full interest in options for the Wyoming Iron Complex in Albany County, Wyoming, that Andrew Brodkey was hired to lead Titan.  Further, Mr. Brodkey was specifically identified as an asset acquired by Titan as part of the 30th June 2012 transaction with J2 Mining.  It is very misleading for “John Bell” to now imply that Mr. Brodkey had been instrumental in forming Titan Iron Ore, Corp.  The only other disclosed “executive” of Titan Iron Ore, Corp, was Ronald Richman who from his biography, has never even seen a mine, much less ever either explored for mineral deposits or developed a mining operation.

Second, “John Bell” claims that: “What’s special about this claim is that it was once owned by Union Pacific Railroad.”  There is no evidence available that Union Pacific Railroad ever either owned or developed any mining operations in Albany County, Wyoming at any time for which the records are available.

Third, “John Bell” claims that: “In the 1960′s Union Pacific spent $25m developing the claim, but abandoned it because at 1960 iron prices it was uneconomical to develop.”  This is preposterous on a number of points.  First, the Union Pacific Railroad has long been a good company managed by very skilled and talented people.  It would not have spent $25 million developing a claim in the 1960s for iron ore if it was not certain as to the probable return on that investment.  Second, if Union Pacific Railroad had developed the claim, then it would have obtained a patent from the federal government, or the State of Wyoming, or both for the claim.  Titan Iron Ore, Corp., has admitted in filings with the SEC that the claim was not patented.  Third, even if Union Pacific had performed the initial exploratory work to determine the extent of the mineral wealth, it would not have abandoned the claim and the land if it thought that the minerals would have ever been profitable to extract.  Payment of the real estate taxes on the land would have been cheap compared to the future value of the wealth when the price of iron ore rose.  Fourth, Union Pacific Railroad is in the business of transporting goods and has been profitable in doing so for decades; why would it even bother exploring Albany County, Wyoming, for low grade iron ore?

Fourth, “John Bell” claims that: “Because at today’s commodity prices, what was useless 50 years ago can now be a literal gold mine.”    This claim is absurd on its face and requires willful ignorance on the part of the investor to believe it.  Even if the price of iron ore had risen sufficiently such that the ore at the Wyoming Iron Complex became profitable to extract, competition from taconite from Minnesota and iron ore from Greenland, both of which are, most likely, far higher quality and far less expensive to extract and ship to the steel mills, would continue to force the iron ore extracted from Albany County to be uncompetitive.  Also, this statement requires ignoration of the market for recycled iron and steel, by companies such as Nucor, which is far less expensive that raw iron ore to turn into finished product.

Fifth, “John Bell” stated that: “TFER’s latest quarterly report shows they plan to raise $16.6m to spend on exploration of this property over the next 3 years.”  This could mislead an investor into believing that the $16.6 million would be raised from a stock offering.  However, nowhere in its filings with the SEC did Titan even mention such a stock offering.  Even if Titan were to make an offering to raise the $16.6 million, Depending upon which numbers one choses to believe, there are either 187 million or 49.7 million shares issued and outstanding.  At current prices, Titan would need to offer 11.22 million more shares.  This would dilute the current shareholdings by either 6.0% or 22.6%.  Assuming that the correct number of shares currently issued and outstanding is 49.7 million, issuance of a further 11.22 million shares would dilute the holding of each investor by 22.6%.  I cannot imagine any sane investor knowingly getting himself into such a situation.

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5 Responses to ““John Bell”, 15th March 2012”

  1. Hello, any new emails on TFER today that you can pls share? Can’t figure out how to get on their list.

    • DT:

      Thank you for your query.

      I shall post all e-mails as these come in. Based upon the comments of others, I should anticipate that the next round of e-mails will arrive on 18th March 2012 with another announcement of the ticker symbol for the company on 19th March 2012.

      If you are really bound and determined to lose as much money as you possibly can, you might want to contact “John Bell” at the following e-mail address.

      support {commercial at sign} hackthestockmarket {period} com

      I apologize for having to use this form: wordpress did not allow me to use the proper form for the e-mail address. To use this form, remove the spaces, convert the “{commercial at sign}” into the commercial “at” sign, and convert the “{period}” into the period.

      I hope that this helps.

      Nathan A. Busch

  2. Rebecca Tusinb Says:

    What does the SEC say about our mysterious Mr. Bell? Also is not some due diligence required on their part to explore and shed light on these obviously misleading and false statements? No wonder our finacial system is in such a mess.

    • Rebecca:

      The first thing that the agents at the SEC would need to do is to put down their doughnuts and coffee, get off of their lazy butts, and to log onto the their computers to view the commentaries on this “John Bell” person, who I am convinced is actually Shane Whittle. However, for them to do so would take some effort and motivation, which I am convinced they are sorely lacking.

      Back during the Jammin Java SCAM, I wrote to both the Washington and Minneapolis branch of the FBI to provide the FBI with the details of the penny stock fraud then being perpetrated. I also wrote to the SEC in Washington giving them even more details of the penny stock fraud, including the location of the computer that was then hosting the commercial produced and published by “John Bell.” Not surprisingly, there was absolutely no response from either the FBI or the SEC. What is surprising is that I was contacted by an agent of the Canadian version of the SEC. We had a nice couple of conversations and I gave him every thing that I had. He indicated that he would be in contact with the Chicago branch of the SEC as well as the Minneapolis brach of the FBI. I received no further contacts nor did I ever learn what became of the search. Needless to say, “John Bell” went unscathed from the Jammin Java SCAM whilst hundreds, if not thousands, of suckers collectively lost millions of dollars.

      It seems that our federal law enforcement officials are far more interested in destroying the life of a simple man whose banker made some minor false representations on a mortgage application, the effect of which was that the man received a mortgage that he should not have, than catching the large crooks who perpetrate these penny stock SCAMS.

      I hope this helps.

      Nathan A. Busch

      • Nathan, thanks for your response. I’m a day-trader and assume all risk involved in trading OTC stocks such as TFER. As long as one’s not naive in hoping this will become the next Apple and trade it well, you can make a few bucks. I can tell you that John Bell is definitely talented in promoting stocks in a subtle manner, all while laying out clear disclaimers 🙂

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