Compare to sector averages
A lot of bickering over nothing on this BB.
I suggest you go over to Stockcharts and run some comparatives. TUD to $GOLD, TUD to any of the several sector gold indexes.
Big run up last Spring/Summer of course. Then in about August the gold price began to dominate price movement and the ratio remains virtually flat to today. The trading in the amigos is just churn and chop penny flipping. Not a game I’m interested in - I remain long for three main reasons - first I believe there is a good speculative bet of additional discovery at TC. Second I believe there is a good prospect of a T/O premium on current share prices, especially because of the potential synergy in tying-up TC creating leverage over SEA KSM. Third, and perhaps most important, I am exposed in the space wand went looking for gold juniors for exponential gains on the back of anticipated gold price rises.
The first two are suppositions based on the property. At the current market cap I see a free ride on potential discovery upside with a solid asset being proven up with a premium potential. But the third is a macro-economic bet, and those are the real long-term money makers for any portfolio, to be positioned in the right sectors for return on investment. We could have a long discussion about why but a weakening US dollar, an inflationary bias by central banks, the disruptions likely to arisen from a battle among the EU, USA and China for dominance of international banking and sovereign financial reserves come to mind. And an outlook of zero to negative real interest rates which makes sovereign bonds, the natural first competitor for lower risk store of value against gold, an asset class to avoid. Why pay a government to borrow your money?
Hot money follows drill play discoveries. Big buying pressure in a development play waits for news and movement in the commodity price. The TC market cap is significant at this still-early stage, but more importantly the gold sector in general has been quiet so long as gold has not restarted its climb to $2000 and beyond. Most interest in junior gold explorers is looking for leverage against the POG?
I’m pretty relaxed about TC provided the macro gold picture remains stable and on track for improvement. When gold attracts broader market attention by cracking through $2000, watch all the junior golds benefit from inflows into pooled Andy institutional exposure which will float the TC boat as well as any. And KK and his promise of delivery of value? Eventually he will come up short, but he’s been on a roll, and the geology at TC looks promising given the chain of deposits running up along the red line,
Be right, sit tight, ignore the noise and chatter. Gold luck longs, and for those that nibble and quibble on the short side, well, good luck to you and thanks for the market liquidity, sometimes we all have other reasons to want to be a lemon to jump in or out at prevailing prices, and it takes two to tango on any trade.
cg