Message: UC risk vs reward!
Hi all,
Just wanted to throw out a few of my thoughts specifically about UC.1. Consolidation sinse Jan 1st, 2009 - Going off of volume history it would seem that yes UC is in the hands of traders that flip flop it for tid bit profits. This is common to Junior PM stocks so that is just something that we have to live with. On the up side UC has consolidated at or over $.08/shr for almost a year and a half. I have not crunched the numbers on the actule volume traded in that time but I think it is safe to say that even in light of the flipping of this stock a good portion of the total float should have found its way into hands that would plan to hold for the longer term. 2. Production - So many Junior PM's go on burning cash buying projects, sometimes scattered all over the world, drilling and exploring them not really in a focussed commited fashion either. They just go from one spot to the next looking for the next big hit proving up xxx inferred and indicated OZ's and half the time you wonder why the heck they bother with the 43-101's. Then at some point they run out of people willing to stake horse for them because they never turn a project into production. The fact that UC has finances in place and is commiting to getting the La Yesca mill opporational and up to 200 ton capacity sets them apart from many others in there peir group. La Yesca has about 4-5 years of production of existing tailings to boot. This should help them avoid adding to many shares to the total float (dilusion). Will give them substantially more exposure from analysts and I hope open up the opportunity for many more institusions to hold UC. 3. Exploration and land base - The Copalquin, Mar, La Yesca they have 100% interest in a very large stake (150,000 hct +) right in the Sierra Madre Mining Belt that has a great and well known history of proven and previously productive mines and reserves. Also, much of this area is has yet to be drilled and offeres awesome exploration potential. It appears as though UC is also financed to complete the third phase of drilling. I know there is the McFaulds deal etc... but it is the Mexico assets that I think are the biggest potential. 4. All though UC has been moving slower than I would have liked, Management is really moving in the direction they say they were positioning the company and following through as they hav edirected. $300-$500 Mil cap in 2-3 years is agresive but I believe we can have confidance in Voisin to make every effort to get us there.5. Risk vs. Reward - There is no doubt still a ways to go before La Yesca is producing at capacity and at decent recovery rates but once this comes to fruition I believe the risk factor decreases substantially with UC and at $.08/SHR it does not take much of a move to sell a portion to get back your primary investment. I think the area has a history early and recent that proves that UC is in the right place with real posibilities for exploration success.Thus, I tripled my position in UC today @ $.08 and $.085. Ya, I got impatient and pulled the trigger on the last 12,000 shares @ $.085 with about 2-3 mins left in the trading sesion. Just a quick touch on some of the pluses I see with UC,Deno G.
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