Recs: 4

Back 11 months and 21,700 messages ago when Kazoo and I revamped this board, we wanted to make a place to discuss all things precious metal related. The many participants on the board have realized this goal but we've had bumps along the way (or should I say trolls along the way). One goal I had in mind is that this board would be a place to share stock ideas. This is the one area where presently the discussion lacks. I think it emanates from those who attack new investment strategies and the people who propose them. To help break new ground in this area, I'm going to throw out a potentially promising stock: ECU Silver.

A little over three years ago, I bought 40,000 shares of ECU Silver at C$0.40. They kept hitting good drill results and was garnering a great deal of attention by members of the Lemetropolecafe.com. ECU began hitting some very high grade silver holes and found numerous mineral rich veins. The stock exploded in a very short period of time form C$0.40 to over C$3.00. Subsequently after that move, great drill results barely nudged the stock north like it did. I then had some nice looking stocks I wanted to buy and sold all my ECU. Over the next 20 or so months after I sold, I'd peek at ECU and all it did was fall as more silver resources were being proved up. ECU management made a bad decision that they would cease limited production of silver and load up on debt. That is precisely what they should not have done in hindsight with the credit crisis roaring and investors not giving too hoots about exploration results.

It seems to me that ECU pulled their head out and changed their corporate strategy. They issued 25 million shares and warrants in January and purchased a mill from Hecla that is right next to their property. They found the mill operation in excellent shape and are now ahead of schedule for starting up production. I think that now may be a highly favorable risk to reward ratio investment in ECU. The stock is currently trading at C$0.54 after being depressed after the C$0.70 placement at the end of January. Their resources are around 430 million ounces of silver equivalent with the potential of more than doubling it in coming years. Their production is targeted at 1.2 million ounces this year with the possibility expanding capacity. This is a very high risk stock play and only really suited for masochists like myself. I recently purchased a slug of ECU warrants (strike C$0.95, expiry 58 months).