: Although I don’t like to make exceptions to
the general 5% rule for my own portfolio, once in a
“blue moon” I do. There are several reasons why I have overloaded on this stock:
1. Some of the smartest people I know, including
Chen Lin and Brent Cook (whom I interviewed
on my radio show a couple of weeks ago), are
enthusiastic holders of this stock. (By the way,
check out Chen’s views on this, below: “What Is
Chen Buying? What Is Chen Selling?”
2. The company has loads of cash, cash flow
from the operations of a silver mine in Bolivia
for Sumitomo, and most importantly, some 46
highly prospective properties that were
accumulated before the bull market in precious
metals started. I believe each of those properties
has a value that is barely recognized if recognized at all. In fact, on the basis of its highly prospective property
holdings alone, I believe the stock is worth 3 or 4 times its current price.
3. There are fantastic drilling results from the company’s El Quevar Silver Project in northwestern Argentina.
(See Chen Lin’s remarks below.)
4. Pre Public Offering Quiet Period – The company has not promoted its story at all, as it has been in a quiet
period prior to raising some cash through a public offering.
