Re: What gives?
in response to
by
posted on
Sep 03, 2008 10:27AM
(Edit this Message from the "Fast Facts" Section)
The tsx is in a nosedive because the world economy is faltering.Growth is slowing even in China. This results in lower commodity prices and a less than rosy outlook for mining companies, especially those that do not have a mine and no income.
Although ttm has a nice resource, there is no guarantee that a mine will be built. Falling prices along with difficult financing conditions make companies like ttq even more speculative.The fact that sp is falling indicates that there are more sellers than buyers at this point.We are seeing this same senario with many other companies,especially the non producing juniors.
I think what we really need to see is more good news from a world economy growth standpoint. The U.S. is a giant consumer that needs to get back to consuming.As we all know ,they have a number of problem areas to overcome before good growth returns. Unfortunately for us ,mining is becoming a not so hot area to be in at the moment and I believe that this is why good news releases from ttq and most others are not exciting the investment community overall.
I wish this wasn't the case, but I really think it is. Rico