Follow-up to Teuton article
Someone pointed out that i didn’t give symbols for some stocks, so here they are:
Barrick Gold, ABX-T $49.00*
Silver Standard, SSRI SSO -T $18.00*
Teuton Resources, TEUTF here; $.43
TUO on the Canadian Venture. $.475*
Seabridge Gold; SA SEA-T $29.60*
Imperial Metals: IPMLF III-T $15.75*
*prices in cdn
“AS” suggested there are more conservative ways to play this location and I will discuss that below, as well as emphasizing what I assumed was fairly obvious, the speculative nature of stocks like Teuton; they are not for everybody.
Following up on “AS’s” point, clearly, the conservative way to play the Golden Triangle is to buy one of the established stocks, SSRI, SA or IPMLF. SSRI and IPMLF are explorers and operate mines. SA is “Teuton with lots of gold.”
Obviously, Teuton needs to find a viable deposit for its share price to take off; and that is the goal.
Teuton is what I would call an adjunct holding. There are many companies that were like Teuton before they found gold in quantity. It is my feeling that we will follow in the footsteps of some of the success stories here, due to the fact that we have 300,000 acres in one of the most prolific areas in the gold, silver, moly, copper, etc. world today.
So it has to be said that when you are buying a stock like Teuton, you are looking for explosive stock appreciation and there are risks that have to be considered; that is why this stock is not “suitable” for widows and orphans. If you are an orphan, maybe you shouldn’t buy this,… OMG, I just realized that I am an orphan! I guess I’m talking about “younger orphans.” 🙂
Many of the folks I sent the “Teuton” letter to are already in the game and are suitable for purchasing the stock, but I’m not an investment adviser; just someone who knows this company well giving his own opinion. So one needs to do their due diligence and decide if this type of company is suitable for their goals, bearing in mind the risks.
I add this because there should be no ambiguity that this stock is speculative and I advocate it being PART of one’s portfolio, the percentage being up to the individual.
The exploration companies are, for the most part, not miners; they seek to build gold reserves to make their stock attractive for takeovers. Daily, weekly and monthly price swings are contingent on how much gold is found or likely to be found, often fueled by proximity to major finds; more importantly, finding ounces and reporting them via a 43-101 study which is actionable in the sense that the ‘talk’ about gold ounces becomes a reality and bigger companies now have a start point to consider the economies of bidding for properties or the target stock itself.
A good source of information is Gary Assaly, the Investor Relations guy at Teuton. He can answer any questions you might have, if you are considering a purchase. His phone number is:
1-800 879-2333
On Friday, August 20, Teuton Resources completed the last of its private placement sale, raising a total of $900,000 to be used for company purposes, such as drilling, etc. That stock was sold at .45 a share with a full warrant. People were buying it when Teuton slipped to .34 because the warrant gives them an option to purchase more shares at a price with a ceiling with a term of two years. A private placement is for qualified investors, meaning they have to demonstrate financial wherewithal. The only reason I’m referencing this is that Teuton may…may issue more shares if they decide to do an overallotment. Any private placement stock is subject to a mandatory holding period of four months under Canadian law.
I’ll be following up in later days.
Mark
