Thursday, November 10, 2011

alexco resource

an interesting update on alexco's properties + production + prospects by its major shareholder & CEO clynton nauman in munich 2day :-)

well, there is everything fine @ alexco:
  • rising silver production
  • no debt
  • profits high enough 2 finance the planned growth without any dilution
  • 2011 was be the 1st profitable year
  • the environmental division is also develops fine and gives the company advantages which the competition hasnt
  • theyve gold too
  • as ive told ya already, the CEO is the major shareholder, so he will prolly think like an owner and not like a manager (= greedy salary + bonus + size driven, senseless overpriced M&A seeking megalomaniac). that should benefit the shareholders a lot => dividends coming soon?
  • any other investors? yep, there were few names, but i only could remember eric sprottmaybe cos ive met him on friday last week ...
  • etc
nothing wrong out there? well, ive increased my alexco position on monday @ CAD 8.09 ... and yes, the stock closed @ CAD 7.29 today, which means i would get 10% more shares for the same money 2day ;-(. well, the equity markets are completely irrational and our dear homo sapiens financialis is currently sooooo fearful that he e.g. sold one of the biggest silver producers in the world, silver standard resources (SSO) 22% cheaper than yesterday only cos theyve published some lower resource estimation than before ... and a profit of $0.27 per share versus a loss a year ago ... and a cash balance of $356 million etc and so on ... well, ive increased my SSO position yesterday and thus such a dramatic price decline on day two hurts like hell, but when ive read the 'reasons' and recognized that SSO hardly will go bankrupt on this issue => i just thought WTF, WTF, WTF => too funny, isnt it? i just laughed and laughed and laughed abt the stupidity of investors / traders and yes, ive doubled my yesterdays SSO position, so i have double the size of stock which is currently 10% down => lets lean back + appreciate the pull back in a week or two or three? folks, whats your guess:  whos right this time, mr. market or me?

btw, my initial investment idea was born here ;-)


jaro gruber said...

investor lunch 2day ... well, despite the current share price (most mining companies suffer from soooo bad investors' sentiment, u know?) the future looks bright for alexco ... rising silver production, no debt, cash-flow sustainable for organic growth, 2 more mines going into production in 2012, no need for new financing ('no share dilution'), all assets in yukon/canada ('save jurisdiction'), the CEO is the single largest private shareholder, etc and so forth ...

damn, lets call that a buying opportunity and yes, ive bought some more shares ... many more, to be honest ... ive more than doubled my position within the last week ... and yes, the current price is again lower than ive paid at market opening CAD 6.56, much lower? hmmm, a litlle bitlower ... CAD 6.37 ... damn again and again :-)

jaro gruber said...

btw, is there s.o. who could explain the price finding rules @ TSE (=toronto stock exchange)? in germany the exchanges try to find the highest possible volume in order to quote a fair price for all buyers/sellers, the TSE seems to pick-up every order up to the limit i've placed before the market opened and thus there are executions like 6.47 => 6.56 (me) => 6.47 again ... what a fraud ;-(

order book details