And some people claim the market is rationalI agree with the general concensus that the market is overbought and needs a correction. What I don't agree with is the valuation put on certain companies during such corrections.
I bought more TCM this morning at $10.18.
According to their corporate presentation at the end of the last quarter they had 523.6 million in cash and short term investements compared to debt of 11.4 million
| Cash (millions) | # of shares (millions) | Cash per share |
| Without warrants | $523.60 | $139.80 | $3.75 |
| Gain if warrants exercised | $220.00 | $24.50 | $8.98 |
| After warrants exercised | $743.60 | $164.30 | $4.53 |
So once all warrants get exercised we have $4.53 per share of cash on hand. We are making money at 25.6 million as of the latest quarter and most analysts have the average price of moly moving up from present levels. No one has it averaging less next year than this.
Investors seem to be treating the cash as a negative for some bizarre reason. Cash is king when times are tough as they are now. You don't want to be wallowing in debt right now that's for certain.
So we have a company with a proven track record of mining success. Virtually no debt. Huge cash on hand. A valuable resource and we are being sold off like some junior nobody. The market is completely irrational.