Updates Terra Nostra Resources (OTCBB:TNRO)


Dear Reader,

Whenever you see a company based in China with management in Vancouver, you need to take a closer look at the pedigree of management.  When this management has a history of fraud with Chinese companies, as those at Terra Nostra Resources, its red flags a’flying.   Finally, when the insiders’ stock is run out of an office in the Bahamas….well you get the drift.

Terra Nostra Resources is unlike other stock promotions we have not seen in the past.  Because of people’s greed for the next  “China stock”, we believe that Terra Nostra was able to seduce some institutional investors to invest at a deep discount giving it a form of credibility that should not be there.  What Citron can most relate this company to is Optionable (OPBL).  Earlier this year, the New York Merc. invested at a deep discount and gave this small OTC company the credibility it needed to propel its shares over the $8 mark.  It is less that 8 months later and that stock is now trading at .16 cents.

It is important to remember that when an institution can lose a button, retail investors can lose their shirts.
In the past week, we have seen two pieces of news come from Terra Nostra, both of these having glaring inherent issues.  The first of the releases was notification to shareholders about the company’s plan to list on the American Stock Exchange.  We have notified the AMEX about the insiders’ credentials and accounting issues surrounding Terra Nostra Resources.   The letter can be read here:

AMEX Letter (PDF)

Next, the company issued a press release stating highlights from a research report that was published by Michael Willingham at Micros Report.�
THIS “RESEARCH” IS A COMPLETE JOKE.  First of all, the company has paid for this research and nowhere is that disclosed on this press release — a blatant violation of SEC law.  More importantly, Willingham’s credibility as an analyst is more than highly suspect.  In the past year Willingham has covered three stocks in common with Citron Research.  Let us look at the current stock prices of company’s covered by Willingham and Citron respectively:

SNFX-  .01 cents

CSHD- .003 cents (after an SEC halt)

RCAU- .03 cents (adjusted for split)

These are just 3 stocks among the collective basket of dogs that Willingham has promoted.  We sent Willingham numerous emails in order to get his comment, and he has not answered.  What makes this report dangerous to investors is the Micros Report is a wolf in sheep’s clothing.  While you think you are getting unbiased research, it has been paid for by the company, and written to order by an analyst whose track record is second to only the 2007 Miami Dolphins.

Last week Citron Research contacted corporate counsel for Terra Nostra resources in order to get some answers.  Initially Gersten and Savage stated that company’s management is now working with auditors to prepare a response to Citron’s questions and a response would be forthcoming in several days.  It is now a week later, and not a word from either the company or their corporate council.

Cautious Investing To All

Citron Research