Fire Sale of a Lifetime I can't believe the negativity surrounding gold, in general, and LSG, specifically, and I believe it presents one of those few buying opportunites of a lifetime.
The situation is analogous to another stock I owned a couple of years (2009 - 2010) back - First Majestic (FR) - and I believe the market response will be similar as follows:
- FR was building 3 silver mines in Mexico - LSG 3 gold mines in Ont.;
- FR missed production projections several quarters in a row as a result of these growing pains - so have we;
- FR was spending tens of millions in capital expansion during this period - so are we;
- FR drifted from $5.00 to $2.00 - LSG from $4.00 to $1.00;
- FR growth finally recognized - stock goes from $2.00 to $24.00 in less than 1 year - LSG's growth and value will finally be recognized - conservatively we will be @ $2.00 by 2013 and $4.00 by 2014 (we will not have the same multiples as FR as the price of silver more than doubled during FR's parabolic rise).
I'm not saying we can't go lower, but buying anywhere in here is a tremendous investment longer term. The market can be very irrational for periods of time. I remember speaking to FR's IR person a couple years back and sensed his frustration. I felt the same response from LSG's rep a short while ago.
Greg
P.S. Be careful of this TTSB poster. He is a semi-intelligent poster that uses half truths to bash a stock. The last stock of mine he was bashing was MMT and it has gone up multiples since his bashing which is always the case.