Nice to see some intelligent posting for a change. I'm brand new to the board but I've been a shareholder of Teuton since the dog days of 2008. Thanks, Klinker, for providing this thread. Your technical knowledge is refreshing to read.
Here are some reasons I feel Teuton will do well in the coming months and years:
There is always a chance for Teuton to make an exciting discovery. For example, if gold is discovered at the High this summer, TUO would clearly catch action as a potential takeover stock. Teuton could be in the crosshairs of up to three companies -- and maybe a wildcard that's not yet on the scene --but SEA, PVG, HDI are the three logical bidders (or future joint venturers.) I'm stating the obvious, I know.
But even if the presumed High drilling (this season) is disappointing, it might not matter anyway if more high grade gold is discovered outside the VOK but in the Golden Triangle (The closer to our properties, the better). I believe it is entirely probable that Teuton's 300,000 acres of Golden Triangle "real estate" will attract enough investor-speculator attention that could propel the stock to move much higher.
Teuton's "forgotten properties" may come into play. I remember that when Teuton acquired land near Imperial Metals' Red Chris discovery, the stock took off; of course, those were "better days" marketwise. That property ("Yellow Chris) is in "mothballs" right now, but it can come to life any time.
Assuming Teuton merely retains its portion of Treaty Creek (without commenting at all on the litigation), Seabridge Gold might be another source of capital for Teuton, as one scenario envisioned by Seabridge is drilling two tunnels through that property.
But let's face it. The main impetus for a Teuton surge will be a shift in investor sentiment as they reevaluate gold stocks as majors (hopefully) increase their M&A activities vis-a-vis juniors.
The convergence of soon-to-unfold events will be positive for Teuton as well, such as the newsflow about the ongoing construction of the Northwest Transmission Line, and--of course--the effect its completion will have on facilitating future infrastructure buildouts in the GT; last but not least, perhaps a more business and mining-friendly US administration will take office in 2013. And don't forget that actual mining at the VOK may take place as early as 2015 (if memory serves.)
All in all, Teuton is a great long-term hold, if you believe in the ultimate "flowering" of the GT.
I mentioned US politics because most of the future volume will come from the States and a change in administrations may have a salutory effect on all stock markets as money hoards flow back in to investments. I am not taking a public position on the US election; just stating what I feel is a possible consequence of a Romney win.
On the other hand, a possible benefit from an Obama win might be a shift away from dividend paying stocks to more growth oriented plays that may offer dramatic appreciation. Gold stocks would fit that bill perfectly. Remember, the Obama plan calls for taxing dividends at the ordinary income tax rate. To be clearer, there would be less incentive to seek out dividend payers as opposed to growth stocks.
Here's to a bright future for TUO shareholders and juniors investors in general. |
