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Message: CHALLENGE: Summary and thoughts

CHALLENGE: Summary and thoughts

posted on Nov 24, 2009 01:40AM

CHALLENGE SUMMARY:

All five of these companies are fundamentally different.That is part of the point—to see whether or not a languishing share price in a post-crash consolidation, regardless of the fundamentals, can be used to gauge improvements in said fundamentals.

In the three cases of Aquiline, VG Gold, and Terrane Metals, it was fundamental news that caused the market to revalue the company and to launch it from a 9-12 month consolidation, and to gain at least 1000% from its post-crash lows.

In all three cases, a crash of 80-90% from a recent high was followed by a long (9-11 month) consolidation in which the share price only approached a maximum of 25% of the pre-crash high.

In all three cases, people who understood the progressing company fundamentals and who bought into the post-crash consolidation period were handsomely rewarded.

In all three cases, companies in a long post-crash consolidation saw a slow rise in share price, still significantly below pre-crash highs, but with an upward bias, leading up to the share price explosion.

This long consolidation with an upward bias is exactly the point at which I believe Tyhee is in presently. The explosion will come... but when?

As can be seen from the mixed results of the stock chart challenge, in most cases, it is almost IMPOSSIBLE to look at the share price during the post-crash consolidation, and to determine whether or not company fundamentals are improving. Although five people correctly identified Terrane Metals as a soon-to-be 1000%+ gainer, only one person thought Aquiline Resources and two people thought VG Gold performed similarly. On the other side, three people incorrectly identified Minera Andes and one person incorrectly identified Tyhee as falling into this category.

Since it is extremely difficult (if not impossible) to correctly predict which companies are progressing in their fundamentals by only looking at the post-crash consolidation share price, we should focus on what we DO KNOW is happening behind the scenes right now. For Tyhee, we DO KNOW that they will be releasing an updated resource before New Years, a Pre-Feasibility Study in the first half of 2010, and environmental permitting updates. Thus, if we can correctly act on the fundamentals before the market acknowledges them, we may look at the continued consolidation period as an opportunity.

If you think you can predict the moment when these fundamental improvements will be acknowledged by the market: I would ask you to look again at the charts of Aquiline, VG Gold, and Terrane Metals before their explosions. Ask yourself honestly, when those companies share prices were still languishing at 75-80% below their pre-crash highs, were you willing to buy? Could you tell then, that within the next 2-3 months, these companies would be 1000%+ gainers for people who bought in the crash and during the consolidation?

If the answer to that question is “NO”, that you cannot honestly tell, yet you believe in the company fundamentals, I propose to you that it is not so important whether or not the market has recognized what we already recognize, but to know that you are being presented with an opportunity to accumulate shares prior to the revaluing you know must come. When will it come? Some can tell, most cannot.

In the meantime, I hope that those of you discouraged by the current share price, will not assume that this means the market has made a definitive verdict that Tyhee is doomed. Just as in the examples provided, I believe the market will soon realize what a few of us individuals realize: that Tyhee is vastly undervalued, and progressing steadily toward becoming a mine over the next several years. Yet, before that happens, before the market revalues this company as we would value it, I believe we are being given a gift. I firmly believe that we will all look back 2 months and especially 2 years from now and be SO THANKFUL for the gift we were given to accumulate shares in Tyhee at these prices, as the value of their assets increases on a daily basis. You could not ask for a better deal, a better setup, a better gift.

Thank you all for helping me with this experiment. I welcome anyone's thoughts. I will be away starting tomorrow for the Thanksgiving holiday so will not be able to post much. I hope everyone has a happy Thanksgiving. This year, I know what I am thankful for: the gift of cheap Tyhee!

Hysteria

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