Fagan Report just released news for IPJ & YRI:
IPJ and YRI are two stocks widely held by subscribers. They are the stocks we bought for Busang/Bre-X type exposure, so they are the ones that have been affected most by the collapse of Bre-X. I'm sure some of you pulled the trigger on these stocks at higher prices. I congratulate you for your decisiveness, quick action independent thinking, and being right. That is the mindset I want every TFR subscriber to eventually develop. If you sold, read on; there are good reasons for owning these stocks again.
If you are still long, I want you to know that your decision to stay long was just about as fundamentally right as those who didn't. Just a little unluckier. As the above charts illustrate, both these stocks were recovering quite nicely after the Bre-X collapse, only to have their rallies curtailed by Delgratia and Golden Rule. There was no way to foresee these events. Both of these stocks are now in a downtrend. I met with senior management of both companies at the New York Gold Show earlier this week. They are aware of this, don't like it any better than you and I, and are working overtime to reverse the trend. One thing shareholders need to realize is that companies carrying out well planned, professionally implemented exploration programs cannot just change their plans in mid-stream and produce stock market moving news at will. Both companies know only a good drill hole can restore their stock prices to their former levels. They are doing all in their power to keep ongoing drill programs turning, while advancing their other properties to the drill stage as quickly as possible.
International Pursuit Corporation has about $25 million in working capital. It is aggressively carrying out its scout geological reconnaissance and drilling programs on the island of Kalimantan, Indonesia. More importantly from a market standpoint, it has become the largest mineral concession holder in Mongolia. I expect Mongolia to attract a lot of attention this summer. Pursuit is expected to start the first of several planned drill programs there in July.
Yamana Resources Inc. also has about $25 million in working capital. Positive results from drilling Papua New Guinea and South America will soon establish a floor for the stock to rest on. The company's annual report will be available in a few weeks. I recommend you call the company to receive one. Their copper porphyry play in Chile is explained in that report. If there is a short cut to higher stock prices for Yamana, this play could be it.
We have to look at everything as first time buyers now. Past market valuations have disappeared with the gold at Busang. In what I consider a downtrend market I don't want you to pay any more than you have to for anything. I do want to point out, however, that both of these stocks surpass all my selection criterion. Whether you own them or not, they should be monitored and then accumulated at the best price possible.
Indonesia No, I haven't given up on Indonesia. There is a lot of gold and a lot of beat up companies with money trading at low prices to be found there. I'm just giving it a little time to see if the folks who run the place can recover from their almost terminal case of gold fever. |
