GORO....

Bull,

I read from your recent posts about GORO in the JH thread. Can you elaborate a little more about what you think about this company?

EarthMonkey wrote:

Bull,

I read from your recent posts about GORO in the JH thread. Can you elaborate a little more about what you think about this company?

In simple terms, I think GORO is way overvalued and propped up by hype.

GORO has priced in way too much, and when a disappointment comes, which it will (eventually does for all miners) there could be a conciderable revaluation to the downside.

Just an opinion; I could be wrong.

Bull, Earthmonkey, others,

I'm not worried about GORO or Goldplunger snookering anybody. If you think it's risky. Don't buy it! I've over doubled my money so far. I've got nothing to loose. There may be some number/estimate/calculations issues. But that only half of what makes a stock go up. Look at GMO. It didn't go through the roof till the larger funds started to buy it. Thats what I think Goldplunger has been saying and hinting in his posts. Is that large investments & $$$ funds will be flowing into GORO pockets this year.

Just remember what Goldplunger wrote to Shelby:

Quote :

YOU ARE AN IDIOT AND WHOMEVER FOLLOWS YOU THE SAME.

I believe him!


Disclaimer:
I wouldn't bet your life savings on it. Use only speculation and gambling money to invest in GORO. And please never listen to me! I'm just a dumb farm-boy from the "land of giant potatos". Who knows nothing about picking stocks, but a lot about spuds.

Grassburner,

Dont mis-interpret me being negative about GORO. I was summarizing all the recent drill results since yesterday morning. I have nothing to complain about the recent drill results at all.

I dont have much $USD as I am Canadian. Otherwise, I will increase my holding.

I also made good money from Goldplungers picks in the past. I dont have doubt about his virtue.

GORO.OB up 11% on huge volume and no news. Maybe someone recommended it...Looks like there is new posts on the JH Forum, but I'm not going to dig for them!

On HomePage of Stockhouse Today:

Stockhouse Community News: Gold Resource Corp. makes for a fat pitch
Monday, February 25, 2008
By MontyHigh

http://www.stockhouse.com/shfn/article.asp?edtID=39162

Greetings Bull,
In your Jan 08 post you stated that you believed GRC to be significantly over valued.
I value your insight and analysis, so that post has had me a tad troubled... for a while.

I’ve viewed the updated GRC corporate presentation several times…
I like Bill R’s use of the MC/AOP (slides 25-27) as a indicator of all that the market “knows” or believes (mgmt, the range of various risk factors, psychology, etc) about the company.

The updated presentation compares GRC to a set of 4 current low cost producers (LCPs) who receive a premium for their au ounces produced… and shows that the avg MC/AOP or this LCP group is $6.7K/ounce (in the Jan 06 market where gold was @ about $500/oz)… I don’t know that I can agree with GRC obtaining that level of recognition in the market right away, but I do understand the general logic/comparison & math being presented.

Slide 27 shows that applying the $6.7K/ounce produced to GRC @ 100,000oz is $670M/35M shares = $19/share target.

Slide 27 also shows the avg MC/AOP for a mix of 34 high and low cost producers as $2.82K/ounce. So, applying that value to GRC is $282M/37M shares = $7.6/Share target. I used fully diluted per the presentation and rounded up to 37M shares.
Again, all of this uses the $500 gold & market climate of Jan 06.

So, if one was to use/focus on the avg premium of $2.82K/share shown in the presentation, then perhaps there is an argument for GRC’s share price being a tad ahead of itself.

However, the presentation would have most folks reasonably argue that the GRC program risk factors, the Reid brothers’ historical performance & GRC’s marked progress to date would push them into the upper half of the range… the middle of that $7.6/share to $19/share being $13.4/share.

In short, is your Jan 08 statement to mean that GRC’s share price is a tad ahead of itself, but as it goes to production it does have the right stuff and a share price in the teens is reasonable? Or is it to mean that there is something fundamentally wrong, incorrect, with the GRC program as a whole?

Also what are your thoughts on using the MC/AOP “tool” as another piece of the company evaluation pie? I like it, it seems to help level the playing field a bit, at least when comparing peer group companies.

I humbly request any elaboration you may have to offer.

Best Regards,

Boomer,

Your detailed question deserves a proper answer, so I'm sorry to disapoint. I just don't have the evergy for GORO.

I believe any company that promots as much as GORO does, is overvalued. It would be very easy for GORO to list on the Toronto exchange, and they would attract an awful lot of attention if they did. I don't think they ever will...I quess that says all I need to know about GORO.

How many Billion dollar gold producers do you know of that only trade OTC?

Greetings Bull,
Initially, I'm not quite sure how to interprete your reply...
Let me sleep on it & see what comes to mind for me...
Quick followups below - obviously open for any/all to weighin/comment.

On JH forum Goro thread someone posted link to recent Bill R Wallstreet presentation... in post presentation Q&A someone asked Bill R why he was there @ Wallstreet since he already had raised $ to go into production... believe his answer was something to the affect that he had to "husband" (as in manage and be a good steward of) both the mining side & the company/shareholder side of the business, so he and his brother schedule 1/3 of their time for public/investor relations work... (which brings to mind for me the public discussion of a potential dividend in the future, etc).

MC/AOP = Market Cap/Annual Ounces Produced - still liking that as a helpful evaluation measure to add to the tool bag. Maybe run that in the background a bit while you work on other companies - still interested in your thoughts on that measure (not necessarily as it pertains to GRC, just in general).

GRC is currently on the AMEX & Frankfort (I think).

Again, let me sleep on it... Initially I'm not "reading" the meaning of your reply; it seems a tad less direct than your typical postings... every now and then I need the 2x4 right between the eyes, and then I start to understand - but when I get it, I get it...
before and after


just ask my wife

GRC, aka GORO on otcbb is not on AMEX... yet

what bull is saying is... he doesnt know many big producers still hiding behind the small exchanges where reporting is more laxed.

mshen11 wrote:

GRC, aka GORO on otcbb is not on AMEX... yet

what bull is saying is... he doesnt know many big producers still hiding behind the small exchanges where reporting is more laxed.

Yes, exactly!

GOT THIS FROM IR TODAY -

Hi Grant,

Our logical progression will take us to the AMEX. I cannot give you a time frame as to that move. We are focused on getting El Aguila into production.

Thanks for your support.

Regards,

Jason

Thanks for the help folks

Always interesting... will have to log that concern for future application & consideration.

Mental block re Goro on OTC vice AMEX - scares me when I do that

Best Regards,

Near 52 week high -

http://bigcharts.marketwatch.com/quickchart/quickchart.asp?symb=goro&sid=0&o_symb=goro

almost but no cigar (today). maybe next week.

Presentation at Latin American Mining Congress 2008 May 1st

http://hosted.mediasite.com/hosted4/Viewer/Viewers/Viewer320TL.aspx?mode=Default&peid=4657583f-55e3-4594-be92-12ff5dd18c34&pid=bf5746b9-9752-4da0-93c9-ac81a308e047&playerType=WM7

New 52 week high

I bought a few GORO today after trimming more of my ILDS.PK holdings

I'm thinking more and more that it doesn't
matter what a company has under the ground,
but how mngt can sell the idea to others.

This is no knock against Goro. I wish I had bought some
earlier.

Mngt, mngt, mngt............nothing else matters

Cheers

Quote :

Mngt, mngt, mngt............nothing else matters!

Real Estate People Say: "Location, Location, Location!!!"

I am starting & affirming to "BELIEVE" both sayings. Especially when checking my investment accounts!


NOW my #1 holding! Thanks, GoldPlunger!!!



P.S. I will thank him on the Filipino Forum later.

has anyone skimmed the highlights of buffet's annual meeting? one of the point he made was to buy good business, not management - he rather have mediocre management and good business than mediocre business and good management.

what he means is dont chase superstar ceos. any thoughts?

mshen11:

Investing is so complex.
The world's richest man would know what
he is doing?
Why do we hear the opposite in other investment people??

I'm so confused

md1 i totally agree. but he must be doing something more right than i am

well i let go 25% of my GORO position yesterday not because i dont quite believe anymore but because im overweight w/ a 2 bagger.

thanks to GP whereever he is. but this only offsets the steep loss in TLR. may have (wrongly) bought into his "hype" (?) - jury is still out. but the failures last year didnt help the stock. no one couldve predicted the bad execution

mshen11 wrote:

well i let go 25% of my GORO position yesterday not because i dont quite believe anymore but because im overweight w/ a 2 bagger.

thanks to GP whereever he is. but this only offsets the steep loss in TLR. may have (wrongly) bought into his "hype" (?) - jury is still out. but the failures last year didnt help the stock. no one couldve predicted the bad execution

TLR on a tear lately. Nice to see
Not sure if you still hold it, I am holding my TLR
for now. Eventually I will break even

Cheers