TSXV:SLX.P - Post by User
Post by
lakesurferon Jan 03, 2011 6:52pm
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Post# 17919830
Dave Morgas on SLX Sept.18 (pre merger)
Dave Morgas on SLX Sept.18 (pre merger)from The Gold Report - pub/na/7390?
TGR: You also talked about Silvermex Resources Ltd. (TSX.V:SMR) in your last interview with us. In fact, you said: "I like the company, but I think it will stay within the pack." Is the stock performing as expected, and what can we expect from the junior in the year ahead?
DM: It's not performing as expected; I was one of the first ones on the company when it first began trading and many of my subscribers at that time were profitable in the stock. As the debt crisis of 2008 hit, we were stopped out of the company. Now it looks like they're serious about moving this project toward production. Art Brown, whom I know well from his Hecla Mining Co. (NYSE:HL) days, is becoming very involved. Given the management team, I would expect that they would be doing better than they are now, but again, it's a speculative situation. I mean you can't really compare a company that's a non-producer to a producer. They're two different animals. It's much more difficult to get a mine into production than almost any other business you can think of. Just because they're planning to put it into production does not guarantee that they will—now, I believe strongly that they will—but the market is basically saying, "show me; don't tell me." In other words, it's not performing as strongly as I'd like, but I still own it.
TGR: Are there catalysts that could take it to the next level?
DM: Well, I used to think I could beat the market by knowing the price to projected earnings, and all the stuff we talked about a moment ago, and certainly that plays into it. But markets are psychological. If people decide that Silvermex is the coolest name you could have for a silver company, that will move the stock. I am being serious. If some fund manager puts a lot of money in it because he feels it's undervalued, that will move the price of any stock. There are lots of factors. The primary one, like any stock, is earnings. Stocks move on earnings when they are real companies. Big profits equal big gains in the stock market almost every time. Imagine that—amazingly simple!