Re: What is Tradewinds doing?
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Welcome to the Crystallex HUB on AGORACOM
Crystallex International Corporation is a Canadian-based gold company with a successful record of developing and operating gold mines in Venezuela and elsewhere in South America
Message: What is Tradewinds doing?
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Taken from Tradewind website OPPORTUNITIES OF UNTAPPED VALUE |
| The inefficient allocation of capital in the developing world—compared to the relatively efficient allocation of capital in mature economies—also boosts demand for capital overseas. Investors stand to benefit by seizing the opportunity that globalization offers, in essence by reallocating capital from where it is plentiful to where it is not. We see broad opportunity in the following areas: |
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| Asset-rich companies: Companies that control large quantities of scarce materials like bauxite, copper, gold, iron, petroleum, phosphate and other natural resources comprise a sector of the global economy we believe holds tremendous potential. Share prices of these asset-rich companies can be volatile, reacting sharply to changes in the global political climate and shifts in the demand for the underlying commodities. Frequently they are also undervalued, with share prices that do not reflect the liquidation values of the base materials they own. Thus, even if the commodity price falls moderately, the value of the underlying assets often limits the stocks' downside risk. If asset values rise, stock prices should increase dramatically in the absence of any other development. |
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| Most of the developed economies, including the United States, have already largely extracted their key commodities such as oil, precious metals and industrial metals. The emergence of Asia as a major consumer of resources will continue to put upward pressure on prices. This secular trend should benefit companies that own commodities as well as the investors who provide capital to support their development. We are investing in companies that own scarce, tangible assets essential to growing economies, and that can typically be purchased at a discount to cost-adjusted liquidation value. |
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