Re:cash flow
posted on
Feb 23, 2009 06:15AM
Golden Minerals is a junior silver producer with a strong growth profile, listed on both the NYSE Amex and TSX.
With respect to the necessity of seeing cash flow as a prerequisite for investment interest, I humbly disagree. Perhaps that has been the case up until recently, but I see speculative interest coming into some of the JPM stocks, some that are at least one to two years away from cash flow, or even having a mill, whatever....and there are several examples and growing. I also seeing volume and price appreciation in some that have no 43-101 compliant updates but are going right into small production with small mills...with no resource estimates whatsoever. So, I see that a a real indication that the market psychology is shifting. Traders are seeing more and more opportunity going long and in pockets here and there I note what appears to be the thin ede of the wedge on a new, forward looking sentiment. When it is becoming more noticeable that there really are increasing opportunities to make wonderful profits out there in the scattered small JPMs, in an environment frantically searching for ANYTHING that goes up, then my opinion is that we are looking at a rapidly changing new market fr the JPMs. There is reqal excitement being noticed in several stocks. I have nt seen this for a few years.
So, to say that ECU wll have to be cash flowing with substantive production does not hold water. Just to cite one example, there is a JPM out there trading for over three dollars with only 4 million low grade ounces. Compared to the above mentioned specimens, ECU should be trading for s.everal dollars/share. Conservatism and negativism with a nice dash of manipulation/suppression/corruption have been the most salient factors driving the share price of ECU. How anyone can "overlook" the massive resource in-the-ground, M,I I, and P that ECU has is counterintuitive to the extreme. This will change.
I noticed a real frenzy of negative bashing on many small JPMs since Friday, conincidental with a seemingly determined effort to hammer gold/silver down this morning....along with glowing reports this morning all over the media about market relief due to the potential partial nationalization of Citi. Give me break! Talk about spin and panic!
Could it all be any more obvious? Gold is jumpng all over the place as the same ld tactics are employed, but up from its low already and at first glance, it would appear that the paper boys are in a losing battle with the the rock seekers.
The PDAC, biggest gold/silver show in the world, starts on the week-end. If, as Pic otes, gld closes over $1000 this week...look out.