Been quietly following this stock and SP movements over the past couple of years, however it has been 6 months or so since my last post.
Firstly, after years of turmoil, I am confident that the company is heading in the right direction, for the following reasons:
- The agreement to lease Coyote Gold Processing Plant to ABM for $2 Million P.A was a great decision, allowing the company to generate some revenue in order to help cover costs, during a period when no revenues will be raised through the mining and production of Gold
- The continued effort by Brett Montgomery to reduce company costs is exactly what the company needs, after years of excessing spending and demonstrates a patient and long term approach to rebuilding the company.
- The decision to focus on Gold Exploration rather than Gold Production is a very wise move in my opinion. Focusing on production is what contributed to the downfall of TAM previously and was putting the cart before the horse. So the decision to now focus on exploration also demonstrates and patient and long term approach towards rebuilding the company.
- Brett Montgomery has backed himself and the company with is own money. There is a big difference between a director investing their own money into a company, and a director being a shareholder via options. Never again will I invest in a company where the most influentials director or directors have not invested their own money into the company.
All of the above gives me great confidence that the foundations of a great company are being laid, however it is going to take some time before all this hard work is reflected in the SP, as unfortunately the Sharemarket and its investors are an impatient lot. Why park your money in a company with great long term prospects, when you can trade in and out of companies with great short term prospects? The fact that the price of gold continues to hover around at low levels, also ensures that investors will find better short term plays to park their cash.
Over the last 12 months whilst watching the company and studying the SP movements, I have made a couple of predictions based on what I have seen and heard and I intend to keep my 100% Strike Rate with this stock in tack, whilst making another prediction.
The SP will hit a new 12 month low of at least 1.1c and I will be very surprised if this does not happen before Christmas. Depending on the timing I then have a further prediction of where the share price will head.
I see a great opportunity for investors to pick up some cheap shares in this stock over the next few months.
Included below, is a graph outlining my previous and current predictions, and I have also included evidence of these predictions below:
19/2/2014 - Prediction of 2.5c (SP was 3.3c) Post #12959332
5/4/2014 - Prediction under 2c (SP was 2c) Post #13218546
13/5/2014 - Prediction of 1.5c (SP was 1.8c) Post #13360719
8/12/2014 - Prediction of 1.1c (SP was 1.4c)
TAM Price at posting:
1.4¢ Sentiment: Sell Disclosure: Held
