Tuesday, December 23, 2008

Trading Post (life back together edition)


The computer's fixed and doing what it was built to do today. That's good. Gold dumped $10 just now. Not so good.

Dynasty (DMM.to) up 12% at $3.64. Yeah, I'm gloating today....bite me. Now 200% up on the original recommendation...tough to believe we're just three weeks gone from that point. The valuation doesn't surprise me, but the speed it got to where it got does. Not complaining, though. Not selling, either.

Colossus Minerals (CSI.to) UNCH at $0.60. It may well be time to revisit this thing at this price, Albatross or no Albatross. The last set of drill grades were good but not unexpected, either. The orebody is good (else it wouldn't have been dug to hell in the 1980s by garimpeiro miners) and the 2009 drilling campaign that already has its budget locked'n'loaded will go a long way in deciding whether the tough to get at deeper mineral will be commercially viable or not. Pricewise it does seem to be bottoming out at this $0.45 to $0.60 band level. If Anderson "was retired" I'd be more interested, but in the end biz iz biz.

What is it with Troy Resources (TRY.to)? Down 3% at $0.72 right now, but that might change to up 8% at $0.80 at any moment as the bid/ask is wider than the Grand Canyon. It really is about time the Canadian market swallowed its national pride, admitted that Aussies are just as good as they are in the junior game and bought into this stock. Wildly good fundamentals.

Great Panther Resources (GPR.to) at $0.23. I actually read some newsletter dude saying this thing had great fundamentals this week (I refuse to say who the idiot is, but the name starts with a David and finishes with a Morgan) which is the silliest statement possible if you ever bother to read the financial reports and that kind of thing. Trust me on this; no cash and severely restricted mining operations in 2009 to try and rein in a double-digit cash cost is no sane person's idea of good fundies. GPR should re-name itself Great Dogwithfleas Resources.

Rusoro (RML.v) at $0.43 and Gold Reserve (GRZ) at $0.52. So RML has rebounded nicely in the last couple of days, certainly more to do with the rolling out of a slick promo campaign than the company fundamentals. There's more dilution on the way than the punchbowl at a Mormon Prom night. Taken strictly on the numbers, the 3-for-1 deal RML is offering for GRZ means it's valuing each GRZ share at $1.04 now (0.43X3/1.21 forex rate), precisely double its PPS. This alone would point to just how much the market expects RML to dilute in order to raise capital after the GRZ buyout happens. This assuming it ever happens, of course. A real tangled web, all in all. The very best advice is go look somewhere else to put your money if you're not bought in already. Just avoid them both.