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Placement Watch; Bellzone Mining – pumped & dumped

By Ben Turney | Wednesday 4 June 2014

Disclosure: I have no positions in any stocks mentioned, and no plans to initiate any positions within the next 72 hours. I wrote this article myself, and it expresses my own opinions. I am not receiving compensation for it (other than from ShareProphets). I have no business relationship with any company whose stock is mentioned in this article.

I definitely don’t blame the directors of Bellzone Mining (BZM) for the blatant pump and dump of their stock over the last week or so. To their credit, this board has been entirely forthcoming with the market about their need for finance and timetable for securing it. Anyone who bought into the sudden and unexplained enthusiasm for Bellzone’s stock on May 27th and May 28th was probably asking for trouble, as it was clear a discounted placement was imminent. Even so, this is yet another example of why shares on AIM should be suspended as soon as the company concerned starts the process of raising money.

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