First Asset Morningstar Emerging Markets Composite T.EXM.A

what is driving the stock

[coach247]

I am not a trader, and do not bother with the day to day action except to allow me to buy at opportune times. I did some number crunching this summer and discovered that since 2003 almost every stock that I sold or took profits on had moved on to higher levels thereafter. Even the companies in which I booked gains of 1000% or more, and the companies that tanked for a year at a time, I would have made better paper gains if I had just held onto every share and waited for the bull do its work. But I think most people are not long term holders of juniors. They react to short term selloffs or get overly excited on good news events. So I have this summary to offer on the driving forces for EXM. We have come through a process of consolidation as legacy shareholders are dumping paper and moving on to other things. This stiffled a lot of the upside potential that should have resulted from the positive deals and acquisitions that EXM has closed. I believe that supply of cheap paper is thinning out now, since the selling presure appears to have abated. It is also worth noting that the entire sector appears to be sold out after the latest nasty correction. So the way may be clear to reach higher levels and sustain them this time. The driving force for the company to move higher is the activity on the corporate front. We already have a large suite of property holdings, and it appears that Karl is working to build that even further. Prospective property holdings will translate into higher share values because we are able to gain control of these projects cheaply, and attract other players that will fund the development. The recent deals with Hothschild are a perfect illustration of that. Also, we hold projects that are being advanced in house, through the work of Craig Gibson. Reyna de Oro may turn out to be a large system on its own, and the early indications and results certainly suggest that. As they continue exploration and define a deposit, that will add to the asset value of the company. We are also carried along as the asset value in increased at Moris. The latest news release on that project disclosed that Hothschild is working not just to verify the historic resource, but also to punch in discovery holes at depth with the objective of outlining entirely new resources. The past producing part of that mine is only a small part of the known vein structure and significant upside remains. Having a motivated, no-nonsense partner like Hothschild to carry us for a 30% interest along the ride is going to build value for EXM. When the project returns to production, it could become a long term revenue generator that will allow EXM to fund their own projects without further dilution. All of these things come together to give me confidence in the longer term outlook. As I pointed out, I am interested in just holding, not trading. So understanding that the sellers are drying up, and that there is work going on at several projects to support higher prices down the road, makes me confident and happy to be a part of it as a shareholder. I will not be getting overly anxious as a block of shares appears here and there on the offer. I am more interested in knowing that there are reasons for buyers to step up. cheers! COACH247

[OilSandSam]

Hey coach. Indeed, the sellers did not show up. We weren't that many shares away from matching our 52 week high today, and there were many bids left on the table. At one point I counted over 200k on the bid side at .25 and above, with at least another 100k below that. I think with the right assay results from Hochschild or Yale (could happen any time), we could easily be in the .40's to

[r2j316]

Well written Coach---I'm here for the long haul as well !! r2j316

[glasspar58]

Coach, your okay in my book. Excellent post. I would have been a lot futher had I held my shares of companies that I believed in back in 2001. Oh well. Sometimes one forgets the power of holding. There are a lot of new plays including this one that will fall into the scheme that this should be held long term. I have many investments including this one and will let the bull work for

[sharewizard]

what is driving the stock, people like us that realize they have one of the best pieces of real \estate in the nw hemisphere, in time this will be the next 2 to 3 doller player so in the meantime keep selling to me all u chickens at 33 cents. the wizard