Re: Dear Crowlee, You're a Hub Leader on two forums: PLE.V and TDC.V.
in response to
by
posted on
Jun 02, 2010 10:13PM
(PRESS PROFILE TAB FOR FACT SHEET & UPDATES)
Baires asked me which I liked better:TDC or Plexmar, another company I follow.This is certainly not a plug for that company.It has a history that has yet to be corrected before I would recommend any new buyers to it but if things were to happen all at once it could do very well. Enough said there.
Well Baires, I had to think about that for many reasons.I have been involved in many stocks and Hubs over the years and watched so many come and virtually go.With all of that experience, I still could not nail you a great success story.Who would have thought the companies in the famous “Ring of Fire”, including the infallible Noront, would fall out of the sky?Who would have thought that the gold darling, Kodiak, and others in the area, would have taken off from a lowly penny stock to almost $5.00 and is now once a again a lowly penny stock?Aurelian….I won’t even go THERE!
I don’t like a stock because it has a pretty web site, has a picture of a drill core, or has the word “gold” in its company name.I generally like a stock because:
1)It has an average daily trade volume of at least 200,000 to 400,000 per day. 2)Its chart is showing an upward movement over its previous year low. 3)It has sound and reliable management with many years of experience. 4)It promotes itself using whatever means it has at its disposal. 5)It has relatively few shares outstanding…given it’s potential to explosively take off. 6)It is in a mining friendly country (more on that later) 7)It has significant proven resources 8)Preferably it is also a producer or processor of its ores. 9)Good cash position would be nice. 10)Anything over 10 g/t over long intervals (10 m or more) makes me sit up and pay attention.Grab samples?A nice teaser for sure but forget it.Been there learned that.
A company can have all of the soundest fundamentals…and fail.Why?Because there is A LOT of competition out there.90 % of all small caps also ultimately fail because of unproven resources (i.e. no drill in the ground), inability to get local or national support, poor drill results, poor exposure and thus limited financial/shareholder support.Poor management, high exploration/development costs and lower metal prices are also big factors.
All that to say, Tyhee and Plexmar are two very different companies.Apples and oranges really.They don’t meet all my criteria above but it’s not a perfect world.
1)One is in Canada.Although there may be aboriginal claims and environmental issues, there is often more tolerance.The other is in Peru where it is very much a Wild West where people openly use mercury and arsenic is just something that happens to be produced. 2)Both companies have approachable management.TDC produces regular and accurate news reports that detail where the company has been, where it is going and why it has not reached certain milestones yet.Plexmar is struggling with that. 3)TDC often frequents the trade shows.PLE has not been to one in years. 4)TDC has a well laid out website.PLE shut theirs down several weeks ago for what has been described as “technical sections are being updated”.Not professional AT ALL. 5)PLE is supposedly ready to open a gold/copper/silver processing plant (delayed since March) in another part of Peru near another of its properties. 6)TDC has plans for a processing plant as I understand it. 7)PLE hit a high of almost $1.20 four years ago when everything pointed to a potential gold bonanza.Since then it has been cascading down because of failure to get any community support (as per Peruvian law) and multiple other failures and broken promises. 8)TDChas been oscillating between 10 and 70 cents for the last ten years.It actually hit the equivalent of $30.00 from 1995-1997 (before consolidation). 9)TDC is very close to providing its Pre-Feasibility Study, is an area of previous gold mining, has drills in the ground with reasonable g/t and plans for open pit (read: cheap) mining.This comes with projected low operating costs. 10)PLE is nowhere near providing something like a PFS.PLE is currently trading at.09 cents with about 170 million shares O/S. 11)TDC is currently trading at.165 cents with about 222 million shares O/S. 12)I have met and spoken with Jim Puplava and he likes Tyhee because it meets many of his criteria for a good gold investment company. He was in the original euphoria with Aurelian (made lots of money) and is good friends with Keith Barron who also recommended Tyhee to him.The last time I spoke with him they were thinking of making Tyhee a gold processor as well as an explorer.I see they are still on track to do that.I have also met Dave Webb and found him to be a very knowledgeable and up-front person who I respect. 13)I have spoken numerous times with the President of Plexmar via telephone conversations.Again, although he is very up-front and appears sincere, there have many problem in the delivery department.My suggestion for that company is to:Promise less.Deliver more.
I could go on and on but I think you get the idea:Tyhee is an outstanding buy in my humble opinion.Let’s see if the PFS and future developments confirm that.
Cheers,
Crowlee {