After looking at the latest press releases, Dec 22nd/97 being the last, and checking out the maps of the area as well as Sutton's gold find and there are still a few questions to ask and a little more research to be before I'd call this a "for sure buy".
1. Does anyone know the exact amount of stock issued by TNX? The ASE has 2 figures listed. 27,000,000 Plus shares and 30,000,000 Plus shares.
2. How much gold is Sutton pulling out of the ground and how much are they doing it for, ie: $310/oz or $100/oz?
There is obviously a lot of potential here if AU is coming out of the ground at less than $250/oz. You'll also have to think about the deluted value of the stock when it comes time to ore the gold. There will be at least another 30,000,000 shares issued just to raise enough cash to go into production. Probably more will be required later. That pit they have will need at least 20 million ounces to give it any production value for the shareholder at even $10.00/share. I think however, based on what I've seen so far and just doing some simple calcs, there is at least that much there if not more.... Any comments?
By the way, I'm a computer person with an interest in gold producing and exploration companies and no I do not own any of this stock, yet.... I'll wait for the next assay results which are now pending.
Most under valued stock on the ASE in my opinion is Prism Petroleum. Although they have 43,750,000 share issued, the stock is a good buy at 13 cents a share. It should and will go up after the Y/E financials are out sometime in March /98. I purchased 32000 shares of this stock and since then I have decided to by a lot more prior to the release of the Anual Report. I'm sure those looking for a bargain in penny stock will agree, just based on their past performance and recent purchase of 87 producing gas wells and a processing plant. I plan to increase my holding over the next 6 weeks to 75000 shares. Someone out there may disagree with this, any comments.
M. Atwood
Computer Consultant and ASE Penny Stock Investor. |
