Re: GATA ~ talks of letter writers advocating physical, no shares...
posted on
Feb 14, 2010 09:30AM
Golden Minerals is a junior silver producer with a strong growth profile, listed on both the NYSE Amex and TSX.
"One question!
As an exploration company with the potential that ECU has, are you saying that the shares are only attractive to the market if and when the company shows profitability?"
No, I think ECU's scale of production and profitibility is too limited to cause such an abrupt change. I do believe though that the company's profitability does make it move up in the chain, as it makes ECU less vulnerable short term. I expect the fever in the sector to start with the majors showing sharply improving results and that we will see this already in the Q4 2009 results, which are soon to be announced. Once that fever enters into the sector, it will go down the chain and also exploration companies will become hot.
Like anyone I can only guess how fast the fever spreads and how fast it affects ECU's share price. Will the price managers try to kill the fever for some more time until they can't anymore or will they anticipate and buy in early? We'll see, but I am optimistic that it will happen this year, because too many PM mining companies have turned the corner and are showing better profits.