Rochester Resources Ltd V.RCT

Turmoil?

[POG1200]

Klingklong,

Thanks for saying something. It’s nice to have someone to talk to!

I have resisted averaging since October of 2008, where RCT was about at this price, but I bought some today. My order was in and filled at the market's opening today, but did not show up as volume anywhere, plus my price paid was outside of the day’s trading range to the high side. I have an inquiry filed regarding it. Today’s trading action might be some sort of manipulation. The volume of trading is not big on either the Canadian exchange or the USA pink sheets, but on both exchanges the shares reported all at once, one half hour before closing...

We can try to educate ourselves, and make decisions based on reason, but there is so much we don’t know and therefore a lot of risk involved. My purchase today was a lot like buying a call, but there’s no expiration date, and it does lower my break even price.

Actually, if you look at what has happened since Mr. Luna came on board, things are much better, so I can’t explain the declining SP other than weak hands that need cash are exiting, patience is exhausted, and promotion efforts aren’t going well. I think the company is a bit misunderstood at this point. Since there is now cash flow, more borrowing might not be so bad, provided the payments can be met. What you don’t want is borrowing to pay for borrowing!

As I have not paid much attention to this hold of mine for some time, and am now trying to find somethings out about it, I came across this page, which tells a lot:

https://moneycentral.msn.com/investor/invsub/results/hilite.asp?Symbol=RCTFF

I think the best news is in the lower right Hand corner, “Year over Year EPS Growth Rate.”

On this page both entries for today’s dates are good news:

https://moneycentral.msn.com/investor/invsub/advisor/advisor.asp?Symbol=RCTFF

The most compelling reason for my buy today was Eduardo Luna, who he is, and where he’s been.

(From an RCT PR 1-15-09)

...Mr. Luna has been adirector of Rochester since August 2007 and is currently Chairman of Silver Wheaton and previously was President of Goldcorp's Mexican mining operations.Mr. Luna brings extensive business experience and knowledge of the mining industry and will help strengthen the development of management's corporate strategy and relationships with the capital markets.

Mr. Luna holds a degree in Advanced Management from Harvard University, an MBA from InstitutoTecnologicode Estudios Superiores de Monterrey and a Bachelor of Science in Mining Engineering from Universidad de Guanajuato. He has held various other executive positions such as Minera Autlan for seven years and Industrias Peñoles for five years. He is the former President of the Mexican Mining Chamber and the former President of the Silver Institute. Mr. Luna serves as Chairman of the Advisory Board of the Faculty of Mines at the University of Guanajuato and of the Mineral Resources Council in Mexico.

The part about him being former President of the Mexican Mining Chamber, and former President of the Silver Institute impresses me. Being a man with this background, I’m thinking chances are slim he turns out to be a crook.

This was from the head of SLW when Mr. Luna stepped down:

Eduardo has played an instrumental role in the company’s exceptional growth and performance since 2004,” said Peter Barnes, President and Chief Executive Officer of Silver Wheaton. “We are extremely pleased that Eduardo will remain on the board of directors and that Silver Wheaton will continue to benefit from his vast experience and wisdom.

If you want to know more about him you can visit this page:

https://investing.businessweek.com/research/stocks/people/person.asp?personId=6270703&ticker=RCT:CN

(He has connections with Harvard and Stanford...)

Seems to me Silver Wheaton made its biggest moves forward while he was part of the operations. I’m not expecting him to be unsuccessful with his efforts for RCT. As much as we know, I think what it really comes down to is trust and faith in who’s in charge, and reports on what they are doing.

I bought some more. The volume was so small today. Hopefully we get a bounce back tomorrow, but the current sub-$.10 bid, (for RCTFF, I’m American,) concerns me.