Jamie Horvat Tahoe Resources THO-T TOP PICK Nov 18, 2011

It has been hampered by political issues. Most speculators would be well advised to wait to see more political certainty. Speculators could buy it in anticipation of resolution.

Had a court injunction to shut down their big silver mine in Guatemala, which is about half their NAV, but recently won a decision to bring it back on. They are fighting locals who now have road blocks up, so timing is hard to tell how aggressive they want to get to move the protesters. He got out because he saw better value in other places. He would revisit this once there is more clarity.

(Top Pick Dec 20/16, Down 44%) He thought he was picking it up near the bottom. It is geopolitical issues. It is a difficult environment there now and he exited but may take another look at it.

Had owned this because the Escobal project was one of the best silver deposit out there. The problem has always been Guatemala, which is why he sold his holdings. In July they had a court decision that suspended the mine. They have to deal with the suspension as well as a legal blockade, and in the interim, they have had to readjust their guidance, amend their credit facility, as well as suspend all dividend payments. As a single asset company, they get very highly discounted. There is still a lot of risk embedded in the stock.

This is the Guatemalan end of the business of precious metals. They’ve got activists all around creating the usual problems. He believes the courts have permitted them to go forward. Expects it will get sorted out. Hold on or buy.

He won’t trade it. When rates are rising, gold will be under pressure. It is cheap on a book value basis but you have a very volatile stock with poor price momentum. He would want to see a bottom.

Half of this company is a Guatemalan mine that went through social unrest and a shutdown. People want to see how this starts again. He used to own it but got out when it got a little pricier. It took a 50% correction. You will see a slow revaluation.

This is a name he has avoided due to the uncertainty of their Guatemala silver mine investment. Social license is a big issue for some of these countries. Half of their net asset value is in this country. He worries about the potential for public company conflict with the various levels of government there.

Sold it 7 years ago. He's not a silver/gold fan, so he won't rebuy it. It could recover partially from its decline. But he's not up on Guatemala now where Tahoe has a flagship silver mine that's currently shut down. There is lots of value here, if they can get it going. This is probably dead money.