Patr
There's a long history behind this company. At one time, before a merger about 4 years ago, Mrs McLeod-Seltzer ran an aggressive exploration company that moved from promising property to promising property in South America, looking for "the big one" to follow on her earlier success with Aeroquipa. All types of hype with news releases. Just prior to the merger, this company "got the jump on Barrick" by getting rights to a property that looked extremely promising. 12,000 ground samples showed the potential for a very good result when drilling started, and the price went from 60c to over $5.50 within a few months. The Globe & Mail was hyping it as "another Aeroquipa", with big write-ups. Then, when a road was put in and drilling started -- NOTHING. There was just nothing in the ground. Only a geologist could explain how that was possible after the 12,000 ground samples all pointed in a different direction. Anyway, the price fell to 25c, but after the merger, crept up to about $1.50 as I remember, then dropped to about $1, then edged up again to about $2.30 (about 2 years ago), then sank back to about $1.70 for a long time (at which price one big investor sold off millions of shares - I've always remained a bit suspicious of that), and finally, starting about six months ago, headed down over about three weeks to the present miserable level, where it has remained since. What triggered the halving in price about six months ago, nobody seems to know -- though Bill Jackson had predicted it to me beforehand based on comparing certain factors in this company with those of other companies.
All said and done, however, I can't figure why it isn't moving up with the current upward move on gold price. Perhaps it is just a delayed reaction, waiting on investors to see if the current jump in gold price will last.
Anyway, I'm below my break-even and am not leaving until it gets back above that level (hope I'm still alive!).
Phil |
