Best of times, Worst of times
posted on
Jan 22, 2010 02:10PM
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Tyhee co-owners, yes, we own 10% of the outstanding shares, and seem to be growing in number as well as in holdsings. I'm one of you who believe that DW's own personal vision is to be at the helm of the ship when they are in production, buyin up prospective juniors, and expanding the already impressive constellation of discoveries in the Yellowknife gold camp. You knwo I am on record as saying that Tyhee is way undervalued, and should be worth a billion dollars, particularly when the DAR and pre feas are in hand in less than 6 months. My expectation is for share price to rise to the low dollars by the end of the year, and multipe dollars when they have a permit. Even into the 10 dollar and higher range, once solidly in production, expanded production rates, and having made new discoveries as well as extended the depth of the known discoveries. I belive Tyhee sits on 10 million or more ounces, and I beleive that the price of dollars, measured in gold, must fall sharply in the coming years, so that the price of gold will be well into multipel thousands by the time tyhee is in production. The cost of bread will be much higher too, as we'll have shortages and hyperinflation, and no confidence in currencies until gold is seen as backing them in some meaning ful way.
So tyhee will be a small, but solid, central bank, and I have a set of keys, as you all do.
But these good times are not near. 5 or 6 months is a very long time, and in the mean time, we're going to see the second half of the big W of this recession. We may see a lot of de-leveraging, when everything must be sold, including good investments like gold and tyhee.
It may be very ugly, and I'm wondering if tyhee will be faced with a challenge this year. It may be that raising cash in 2010 may suddenly get difficult, and they may have to scale back some of the planned drilling, and keep enough cash on hand to ensure that they can get into mid 2011, and keep funding the requirements for the EA and mine engineering work. yes, they can do another private placement, but I think that share price may be dragged back down again in a broader market collapse.
So it the worst of times is not over for tyhee, my question for the forum is this:
If the next 6 weeks show a market correction back to DOW of lower than 7000, and gold back down below 900 or so, and tyhee back down below 20 cents, what will you do?
For me, personally, I plan to start to set myself up for success by making a few life changes and financial dealings that will allow me to gobble up more tyhee and perhaps encana shares when the markets get really ugly later this year, perhaps Sept or so. While Tyhee will have achieved the DAR, pre feas, more drill results, and be near some form of respoinse form NWT, it may be in a context where cash is hard to come by. So will this moment be the real opportunity to go all in on tyhee?
I'm not interested in hearing about "not putting all your eggs in one basket", as I am talking about investing a disproportionate amount in tyhee, but not ALL of it.
Would a sub- 20 cent tyhee, during a market collapse, be a buy for you? Or would you go into that cash is king type of turltel which proved smart in late 2008?
SKELEG