To a degree I think that's already happening!
The market has low volumes on many stocks, the cracks can't be papered over, the lack of liquidity exposes some of the games that weren't apparent in more liquid markets.
Investors, perhaps thanks to the internet and blogs such as this are becoming more educated and aware, and don't like what they see!
The comment below is generic to the market, and not towards SLI in particular.
The game has been since the inception of the VSE, is for a person that can tells stories well invests little or none of their own money, acquires a property, (often owned by many former failing companies!) then moves around the investment community trying to pursuade others of its potential.
If successful, the game of raisning cash from other people, listing, drilling, raising cash from other people, more drilling, more raising cash etc etc begins. Along the way directors will invest little or none of their own cash, but will be paid decent salaries, and award themselves options, which are a one way, no lose bet for them, and dilution for those that have invested hard cash at market prices.
A glance down to the very end of the accounts will list the "related party transactions" where some exenses the company has incurred are found to have gone to one or more directors, via another company. It is always worth findingthe related party section of the accounts as this is often illuminating.
At some point many copanies wither and die, become shells, and prepare to be cleaned up and rinse and repeat again.
It's an old game that has been played for years, but maybe the game is up, or will human greed ensure it goes into extra time?
The regulators are funded bythe companies themselves via listing fees, and have a vested interet in maintianing an orderly market, they don't want bad news emerging, so one has to question whether their impartiality, and whether there is a clear conflict of interest.
Investors have lost money all over the market, so I don't see a rush back into stocks anytime soo, if at all, particular the juniors where companies are clingng on by doing small financings just to pay fees and salaries, with no new investment going into the ground, where it would create shareholder value.
Directors' interests are not aligned with shareholders because they are renumerated regardless of success, and the option game allows them to benefit if succesful, whilst risking other people's money in the process, and to lose nothing if they fail.
Nice work if you can get it!
I think the game's up for now, they need a new generation of naive mug punters, and that may take some time.
I would suggest, in SLI's case, there won't be enough time.........
I strongly suggest that those that think Tesoro has value act now before it's too late.
You cannot rely on anyone but yourselves to look after your own interests, so the larger players here need to form a group and engage with the company before it's too late, IMHO.
At least the question shoud be asked, surely?
