TYHEE INVESTORS BLOG

2 battles are going on:
1-Tyhee share price is fighting the 26cts level. The price is oscillating up and down from this first important level. The good news is that every time the price goes down to the 24.5/25cts more buyers are taking advantage of the weaker price and the SP goes back above 26cts. I expect the battle to be won shortly en route to the 36cts.

2-Gold and US dollar. Too early to say of course but it looks that what I have been predicting is happening: US dollar and POG are going up together OR at least the US dollar is stable and the POG is going up. This should continue until at least the end of March if not June. We can expect the price of commodities to go up and therefore the inflation to go up too. Bullish for gold!!

Hubert

Yesterday I wrote: "2010 has just started and it looks to me that we are going to enjoy a very positive, profitable year with Tyhee." and in the first day of the year Tyhee is up 22.7% and is at a new 52 weeks high at 27cts! Volume was more than 331000.
The added good news is that we get a breakout -26cts- and we can look for the next target 36cts. When we reach this level we go for the 60cts target.
I am convinced that Dave Webb and the board are going to play this momentum and release many PR starting in the middle of January and culminating just before PDAC in March. Be ready to be surprised!

Welcome to my Tyhee blog.

2010 has just started and it looks to me that we are going to enjoy a very positive, profitable year with Tyhee.
The stock is ready to move up this year for many different reasons but mainly:
1- Because of the company fundamentals...
2- The gold market.

Let see the details:
1- The company fundamentals:
Tyhee and its board seems to have changed the way it interacts with the market. All the previuos mistakes have been recognized and corrected and this is very positive because of the percerption from the investors.
For example:
+ Financings are done when investors have already agreed to participate, stopping the shorts' speculation.
+ The PR seems to be more effective with new recommendations from different newletters coming along.
+ The board, because of the monetary crisis in 2008 had decided to bunker down and save as much money as possible in order to survive. This was, IMO, a good reaction but the market was so full of shorts -hedge funds in particular- that when they decided to resume the drillings and get some financings done the SP went down to the 8cts level. Now the board is on the offensive: The last financing is going to be used for exploration with specific targets -Clan Lake for example- and continuation of the PFS and permit advancement, DAR...

We can expect a minimum of 2 500 000oz before June 2010 (not counting the real possibility of bonanza grades...)
P&F charts show a target of 60cts.

So we see a new dynamic taking place at the best time possible...When the price of gold is on the upside and ready to run to the $1500 level.

2-The gold market:
Despite all the negative comments and the headlines it is my opinion that the price of gold is going up NOT DOWN. Too many signs are showing up and I can see in the next few monts the price of gold going up despite the strengh of the US dollar.
What I see coming is a battle of the giants where gold AND the US dollar are going to show strenght at the same time. WHY?
Because of different parameters that are supposed to be in opposition but are in fact going to influenced the market the same way:
1-QE is gold positive, US dollar negative...but at the same time it is "wrongly" seen as positive to the dollar and negative to gold because the trillions dollars poured into the market are painting a rosy future for the American economy...GDP up even so slightly... and is therefore "seen" as good for the dollar.
1A- QE is dollar positive, gold negative because of the financing of the US debt. Foreign countries are reducing their purchases of US treasuries and the only solution for the FED is to increase interest rates in order to attract more borrowers. This is turn makes the dollar more attractive... while killing the housing market and "local" (-ie. 100% of their business in the US) business with higher interest charges.This dual effect is going to stay for a while and investors are both going to choose the US dollar and gold !

JUST A NOTE ABOUT HIGHER INTEREST RATES: This could explain why the congress passed a bill removing the ceiling -400 billions- allocated to Fannie and Freddie for rescuing the housing market. There is no maximum anymore (117 billions of the 400 have been used so far) and the new decision can only be explained by the knowledege that interest rates are going to go up killing the housing market for good (expect a minimum of 2% increase in rates in 2010)

2-Political tensions all over the world -but mainly Middle East and Pakistan- are dollar positive and therefore gold negative. The Iranian situation is going to get very tense. It looks to me that instead of acting militarily -for now- political destabilisation is going on. Where is this going to lead? I do not know! What is for sure it's the fact that the "conflict" has already started and if the actual Iranian governemnt can stay in place a war will start shortly. If The Iranian "opposition" wins we could see a diplomatic solution satisfaying all the parties involved. The former seems more likely. So the flight to safety will drive the dollar higher TEMPORARELY. However the price of oil will shoot up -back to $150- and this will be gold positive: Inflation perceptions and the view that the US economy will shrink dramatically following the impact of the oil shock will drive gold up.

3- The EURO/US dollar relationship should change in the near future. 2 or 3 countries in the EU will be downgraded -including a big one like UK or France(I even think that after the first downgrade more would be on the list since the first one is always the most difficult to announce!!!) followed by the first default -One Eastern Europ country. This will put a lot of pressure on the Euro and upside pressure on the US dollar... However after the first knee-jerk reaction the market will consider the value of the dollar and a flight to safety -against paper-currency- will increase the value of gold.
So based on these assumptions I see gold running to $1500 before the middle of the year and even higher before the end of 2010. This will be the beginning of a strong upside for gold in the following 2 years with devaluations of many currencies -mainly Western countries- against the new powers.

Another strong reason why gold should -and the gold shares- go up is the fact that more and more big players are already positioning themselves: Central banks are going to be net buyers this year (in a market where demand is already higher than supply), gold production is declining and powerful players (Paulson for example) are launching new funds targeting not only gold but gold companies too.

IF/WHEN all of this happen, gold juniors are going to be taken-over by large gold producers and sovereign funds (China...).

This is why my target for Tyhee, by the end of the year, is a minimum of $1.50.

GWTW