Michael SmedleySouthwestern ResourcesSWG.TOBUYJan 19, 2005
Gold stocks are very boring these days. This company is getting a little long in the tooth. Just announced an unbelievable drill result of high quality gold. Good management. Very good strong links with Newmont.
Some controversy on some of the reported drilling results, which they are working through. Extremely cheap. Have some good assets. Think the stock will be plagued until the Board of Directors comes out and presents a new company.
The value of the Latin American assets might, at the very least, be equal to the current stock price. You have to have regard as to where the company is going as an entity. Has been a hideous disappointment due to lots of unfortunate circumstances. There is a lot of intrigue behind this. Still have their Peruvian operations.
If you are long, he would suggest that you reduce. Do not add to your position. When stocks have a horrific decline like this one, they can go to zero.
Has been a disappointment in terms of development of its mine. Haven't been able to get it together in finding enough resources to push mine development aggressively.
Has acted extraordinarily poorly and he doesn't know why. Perhaps management doesn't project well. Thinks they have 5 million oz. in China, which could be proven in a feasibility study in the near future. Very cheap. Buy as a value play.
(A Top Pick Nov 30/06. Down 9.7%.) Still buying. One of the great generators of mining projects. Looking for it to be taken out in the next couple of years.
Would be a little concerned if it started to break down through the current lows but in the meantime would continue to hold. Will take awhile to get back up to the $12 area.
Had a major breakdown in March/06 and has not recovered, while a lot of other mining stocks have turned higher. Building a technical base, but hasn't done anything positive yet.
Have a project in China called Boka that received a lot of media attention a few years ago. Initially, it looked very large with very good economics. He feels the economics and it are going to be tough.
Upside potential is there, but has been there for 2 or 3 years. Good management and well financed and there’s nothing they’ve done wrong but the street, for some reason, doesn’t believe the asset is as good as his company thinks.
Has done poorly in the last couple of years, possibly because management has thinned out. Just reported very good results. Because their market cap has shrunk, they may be cut out of the TSX index.