Post by
Hedgehog100 on Mar 29, 2014 4:49pm
A DOUBLE Play: Gold & RTO
I think that the most accurate description of TCH at the moment would be: "a natural resource shell-explorer hybrid".
Because TCH is a DOUBLE play: i.e. its existing gold, AND the expected reverse takeover (RTO).
On the one hand, you have TCH's million ounces of high-grade, near-surface, low-cost gold, with the potential to become multi-million ounces, at a new market cap. of about C$2.262M. (at 1.0c) after the 14th. March placing.
But on top of that, you have the more speculative upside of a good shell.
And shells can be pretty good investments: on 4th. March shares in Verdes Management (VMP) on the London Stock Exchange returned from suspension, and within a week rose more than eight-fold to 0.8p (market cap. £7.44M.)
In effect therefore you're getting 'two for the price of one' with TCH. Two great angles, either one of which could confer multibaggerhood upon this share, and both of which I'm very confident about.
With the gold price having recovered this year and shells coming back into fashion, TCH is in the right place, at the right time.
While I'm not claiming that it's a guaranteed multibagger, I believe that it's the next best thing, and with great downside protection too.