Taseko Mines – The Best Is Yet To Come

Originally recommended on 4/29/09 at $1.40, TGB eventually became a client of mine but remained in the model portfolio because it originally started there. A lot has happened since I wrote comments like this back in June.

While I have a tendency to “back up the truck” on certain plays and more than once have had my head (and attacks on the Internet and in emails about it) handed to me because of my exuberance, backing up the truck on this one has reaped a load full of gains. In a business where you’re many times only as good as your last call, many ask “what now on TGB”?

First and foremost, the news on Prosperity is extremely bullish. Unless something changes in the 11th hour, the ability to build a mine at Prosperity is truly a company maker (not that they didn’t have one already in Gibraltar) and lots of bullish potential scenarios abound, ranging from major investment partners, joint ventures and/or a takeover.

The stock is overbought at the moment and is likely to consolidate between the recent highs and around $4.50. The closer to the lower end of the range the more attractive it appears. Usually I’m long gone on 300% gains but the Prosperity news is in my biased, but honest opinion, an opportunity to see similar gains but over a significant longer period.

You can listen to yesterday’s teleconference for a short period.

Interesting commentary on TGB.