no not really... i have been looking at the different phases of gold and i came across this stock it had a particular sign.... let me post the article i wrote on it for my own research of what i taught... i like writing down stuff :wink: During a talk between among our team about the evolution of the economic situation in the world we discussed many effects of the instability being unstable US currency, we came to one simple conclusion that the GOLD was one investment that will move in its own direction irrespective of how the currencies or the economy performs. Why gold why not silver you would ask? The answer would be straight forward for the fact that Gold has been used as an economic balance against any currency and are used by central banks as a counterpart to balance and control their currency inflation, deflation. As the currencies require more support more because of some X reason the more gold will be purchased to balance it. As of below is a chart showing the gold price in the last 5 year and 10 years respectively. The purpose of these graph its to just show you the growth it has accumulated over past 5 years and that it does not show any sign of change. (sorry images didn't come up) After that discussion we decided to look into the GOLD market and look into potential opportunities where in the gold market itself we found four distinct phases. Phase I would be at the time when the major gold companies will be initiating the termination of their hedges. The second phase would be when the individual investors will start investing into gold producer companies. This movement will show many aspect of the instability that rains and the need of a safer structure to rely on. The third phase would be to my opinion partially joint with phase II where the everyday investor will be investing into depressed junior mining companies in the hope of a return that would change there lives. The fourth phase would be the exploration miners. The importance of exploration miners is that for the main mining industries are going to generate the amount of gold that they can and since gold being such a finite resource they will need to replenish there resources to be able to maintain there production quota. As the gold reserve will start to warn out larger mining industries are going to look towards smaller companies or mining companies that can help them maintain there status and production capacity. The result includes that any exploration mine in the American continent could become a possible buyout candidate. Therefore a potential of profit generator in the fourth stage of the gold rally... The question you ask yourself is which companies are these? Well we did some research and came across a few and narrowed it down to one that we feel have high probability of generating good results in the coming months. Exploration mining can be advantageous in my opinion in two distinct situations. - the current gold rally and global situation - speculation of the movement of price. The current gold rally is explosive and to which extent it will continue to grow is a value that I personally do not even dare to guess, for many factors influence the gold price movement. Some commonly seen factors may include foreign trade, economy, currency, ect... As of December 31, 2003 the gold price reached its maximum value of $416.25/oz. Does that mean that it has reached its maximum and will start toward a bearish path? My opinion and analysis shows the heights of gold prices have not yet even been scratched. The world economy is very unstable and uncertain for people to make decision to which currency to use USD, EURO, CAD, YEN, or others for there savings or international trading. Going back to the exploration mining companies it is known that exploration companies and specially in the mining sectors are fairly risky investments and will not change over any time soon. However when we are on a consistent increase in the gold price, exploration companies become very lucrative and will generate good returns until the gold remains bullish. However these investments are fairly a speculation investment and can be very volatile, since most exploration stocks have a negative earning and a negative sales growth. So you would ask me why I would take the trouble about this investment. The answer would be simple because of the following reasons - This company has a debt to equity ratio of below 1 which shows that it has the cash flow or working capital to be able to finance its debt or operation costs. Pacific Rim Mining (PMU:AMEX) is a exploration company located in British Columbia and is a mineral resource corporation engaged, both directly and indirectly through its subsidiaries, in the acquisition, exploration, and, if warranted, development of precious metals properties. The Company has a 49% interest in the Denton Rawhide Mine, an open-pit, gold-silver, heap-leach mine in Nevada. Ore extraction at the mine ceased in May 2003, and residual leaching of stockpiled ore is expected to continue for several years. The Company's exploration activities are focused in El Salvador. Pacific Rim continues to explore for projects in the Americas that warrant drilling. The Company will primarily be exploring for gold and silver on any newly acquired projects. The Company was formed by the amalgamation of Dayton Mining Corporation and Pacific Rim Mining Corp. We are fervent believers that before investing in any business how lucrative it can be or how much recommended it is we need to go through the business fundamentals. Its base model that was explained above, the management and its general profile (which is usually available of the companies website http://www.pacrim-mining.com), and then the financials. We have looked into the different management aspects and try to show you if the company was well lead to make the best decision to generate the maximum returns. Lets start with the President and Director being Ms. Catherine McLeod-Seltzer Ms. Catherine McLeod-Seltzer holds a business degree, which combined with an upbringing in a third generation mining family, led to a career in mining finance. Her career in different financial mining aspect has helped her forge the understanding and experience in the natural resource industry and her experience in business has suited for Pacific Rim success. In 1993 Ms. McLeod-Seltzer and J. David Lowell, world renowned copper porphyry geologist, founded Arequipa Resources Ltd. Ms. McLeod-Seltzer, as President and CEO was responsible for Arequipa's financing and public relations, raising over $34 million in 3 years. Arequipa was one of the most aggressive gold exploration companies in Peru when it was taken over in mid-1996 by Barrick Gold Corporation in a transaction valued in excess of CDN $1 billion. Subsequent to the Barrick takeover of Arequipa early in 1997, Ms. McLeod-Seltzer assumed the position of President of Pacific Rim Mining Corp. Ms. McLeod-Seltzer was instrumental in assembling an exception exploration team headed by Thomas Shrake and a very strong Board of Directors. Financing arranged by Ms. McLeod-Seltzer has added approximately CDN $14 million to the Pacific Rim treasury since 1997. Mr. Thomas C. Shrake, M.Sc. is the CEO and Director of Pacific Rim Thomas Shrake has a bachelor of arts in geology from Western State College and a master's degree in geology from the University of Idaho. In 1985, Mr. Shrake drilled the first deep hole in the top deposit at the Bald Mountain Mine in Nevada, which is still operating today. As general manager for Placer Dome's 100-per-cent-owned subsidiary in Mexico, he convinced management to acquire the Mulatos project, which at the time had approximately 600,000 ounces of gold in an uneconomic pre-feasibility study. Mulatos currently has a geologic resource of 3.6 million ounces of gold and continues to grow to the north in a target that was originally recommended by Mr. Shrake. He also optioned and drilled the first 30 holes into the Promontorio deposit, an acid-sulfate system in Chihuahua. As vice-president for exploration at Gibraltar Mines, Mr. Shrake almost immediately recommended the option of the 600-million-pound Lomas Bayas copper deposit, which was purchased for US $15 million. Eighteen months later, Gibraltar had delineated more than 7 billion pounds of leach able copper resources. He also identified and acquired the Fortuna de Cobre property. Today these two deposits contain more than 10 billion pounds of leachable copper resources, making it the fourth largest resource of its kind in the world. The company was taken over in November 1996 by Westmin Resources for CDN $350 million and then a year later by Boliden for approximately CDN $600 million. As CEO of Pacific Rim, Mr. Shrake heads up all the Company's exploration activities and is committed to the building of shareholder wealth through the discovery of a major precious metals deposit. Mr. Bill Myckatyn is Chairman of the Board Mr. Myckatyn, a mining engineer, is the past President, Chairman and CEO of Dayton Mining Corporation. Mr. Myckatyn has held executive positions and directorships in several mining companies. Mr. Tony Petrina is Director Now retired, Mr. Petrina's 32 year career with Placer Dome included the roles of President, Vice-Chairman and CEO. Mr. Petrina is the past Chairman of Pacific Rim Mining Corp. and was a Director of Arequipa Resources, where his expertise was integral in helping the company manage the takeover by Barrick. Mr. David Fagin is Director Mr. Fagin is a director of several mining and exploration companies and of various mutual funds of the T. Rowe Price Group. He is the past COO of Homestake Mining Company. Mr. Robert Buchan is Director Mr. Buchan is the Chairman and CEO of Kinross Gold Corporation Mr. Paul Sweeney Mr. Sweeney is a senior financial executive with over 30 years of mining-related experience in finance, accounting and strategic planning. He is currently the Chief Financial Officer of Canico Resources Corp. As the management shows sign of experience and expertise in there respective domains shows that Pacific Rim is willing to pursue its evolution toward excellence and maybe a potential acquisition. Pacific Rim (PMU:AMEX) has mines in El Salvador and Nevada. Even though its size is relatively small and last quarter it produced approximately only 8,800 ounces of gold all coming from its Nevada Denton-Rawhide mine. Does that mean that you should own this stock... The answer is no... However Pacific has two projects in El Salvador the El Dorado Exploration Project and La Calera Project. Both explorations have yet to produce any gold. But the potential for a huge finds exists. According to there research they have potential to find a very rich deposit of high quality minerals and low quality minerals which are distinct markets of their own. Pacific Rim believes production from the El Dorado mine alone could be greater than 250,000 ounces of gold a year based on the drilling results over the last several months. If they are right, think the amount of money it would generate. In the last quarter, Pacific Rim produced less than 9,000 ounces of gold. El Dorado exploration alone could produce 28 times that much every year. Does it sound impossible? Maybe, or maybe not. Who knows if Pacific Rim will ever find gold in El Salvador? It may find which will generate a tremendous growth but on the other it may not. And that is the risk you are taking when owning the shares of Pacific Rim. Now lets make the assumption that Pacific Rim does not find any gold in El Salvador. What option does it have to stay in business and continuing to explore and mine in other locations? It has the option of getting into more debt by getting loans which I doubt they will go toward because Pacific Rim has and uses its revenues from its Nevada mines to fund current and new explorations and drilling costs. However one thing I did not mention earlier which is of crucial importance now that it produced a little over 76,000 oz if silver last quarter worth with the gross sales at $3 Million which is pumped into there El Salvador drilling. Pacific Rim has $1.8 million in cash and cash equivalents and a working capital worth of $8.5 million shows that they have more than enough capital to continue operating for at least one year time with the minimum debt possible. Pacific Rim as mentioned above has a debt to equity ration of zero which means that they are a stable company that is expending at the rate their assets are allowing them. A very good sign of a well structured and well managed company. As of my opinion and analysis with a dose of speculation and understanding of the business I would be willing to say safely that Pacific Rim stock price currently traded at a range of $1 can very fast increase to a 100% or if not even more. this actually i wrote for PMU but same base gold structure.... PS THIS IS PERSONAL RESEARCH NOT AN INVESTMENT ADVICE...... just making sure..... chahine
Man! That is some in-depth research!
That is a very nice presentation you have put together. How many companies have you done such in depth research?
8O
But we don't why they would hit gold. That is the "X Factor".
well till now i have done indepth research of 5 company... BTW i forgot to mention before i manage my challenge account which started with 100$ now to 213$ and another account which has 200$ in it now 250$ account 1 is the safe and short term fast paced trading... accound 2 is a more mid long term trading where the companies are safer and grow taking more time but they grow. about research 1 was total failure ATAR -Atari -in the sense that the company was just pathetic with the amount of debt WHT - which i hold shares of making a nice 60% gain PMU - up 25% and should go higher CHU - chinese telecom company sold making 54% gain (still going up now though :wink: ) VLNC which is still at a good entry price but too speculative for my budget range. just too let u know im looking into 1 more right now which i expect a guaranteed 25% by the end of the year WDC. its a hard drive making company. im actually waiting of couple of information and will try to post something about it here. and i have another company if u long very very long are interested they have no competition in there market... but im looking if the company structure is stable.... ill let u guys know what i find.. about the gold don't forget one factor which is politics and pumpers and dumpers who will try to make the gold and currency move in there favor so that they can make money. so usually patience is the best vertue in these kind of stocks. IMHO chahine
I lost money on WDC once. Everybody loves their hard drives but they don't make much money.
Happy can u tell me more about it in the sense of when it was ... years ... price range and as much information u can give me becuase till now i see the company strenghtning up... chahine
Yeah, I'll actually dig out all the particulars. I didn't have it for long. Seagate makes a lot more drives than HDC although HDC charges more. 08/14/2001 08/17/2001 BUY 50 WESTERN DIGITAL CORP COM $3.740000 $196.99 $0.00 09/18/2001 09/21/2001 SELL 50 WESTERN DIGITAL CORP COM $3.000000 $0.00 $140.00 Not a big winner here :)