http://www.theaureport.com/pub/na/1799

This intense credit collapse has resulted in 50% to 80% drops in many companies in the portfolio. They are mouth-watering bargains. An example is Canplats Resources Corporation (TSX:CPQ). We first bought it in June of 2006 at C$0.22 and within a few months it hit C$0.45, so we sold half and recovered our investment. We’re still holding the other half. We were up over 1600% at one point, but kept holding because what the company was doing was clearly paying off. The company is doing exceedingly well, but the price has plunged from a high of C$5.40 to around C$1.25. I expect to see it at $10 when the dust settles.

These global price declines are terribly hard on the companies and their managements, but from my clients’ standpoint, it’s rather delightful. Just because the company stock is selling for half what it was six months ago, that doesn’t mean the value of the company has fallen. Not at all; it represents an opportunity. They’re sound investments and from a value viewpoint, they’re going to do very well. We’re adding to our positions in many of the companies in our portfolio.