Expansions cost money; quelle surprize!We saw this same thing with First Majestic. They ramped up their expansion and investors dumped another fundamentally excellent company, because by golly, their earnings were down in the quarter where they had to pay for the expansion. Then in the next 6 months First Majestic goes from $2.50 to $14.50 today. Good management has the vision to acquire good properties at appropriate times.
Its said and tragically funny to watch stupid, emotional investors dump good companies at times like this. Warren Buffet said the 'efficient market' theory is bunk. And it is, since most investors lack the foresight and the perspective to see things as they are. These menopausal Oprah Winfrey type investors are the kind that sell their shares to DD-doing investors so they can make money.
Is TCM supposed to build Mt. Milligan with money that falls from the sky? It isnt the Federal Reserve.
Yes there was a cost to acquiring Terrane. Yes this cost appeared on the Financial Statements, like it should. If it takes 3 months for the stock to start hitting the $20 range institutional analysts are calling for, then thats just the bullet we have to bite.