Rich Pickings in Resources
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AZMN up 60% in 6 weeks just one exampleUp to 60% + has been possible from our recommendations over just the past few weeks or so when we urged investors to take advantage of the short term dip in Azco's stock price that so far has turned out to be nothing more than a short term aberration, that actually produced the highest volume and strongest rebound in 9 months.
When volume increases significantly as prices rebound strongly, it is evidence that the smart money is moving into this issue and as a consequence the "winds of money" are flowing into Azco. Could a full-blown hurricane be next?
There's reason enough to believe that a tidal wave of buying could produce a hurricane of money flowing into this issue because by any measure it is incredibly undervalued at these levels, possibly as much as 50 times, thereby potentially rendering it as one of the most undervalued assets on the planet... Let's examine why:
Compelling ComparisonsThis very morning, US Global Investors highlighted the fact that in a little over two years, Wheaton River Minerals Ltd - WHT has grown from a market capitalization of $20 Million to around $2 Billion through acquisitions: An astonishing accomplishment by any measure. Can AZMN emulate WHT and grow from $5 Million market capitalization to $500 Million or so over the next 2 years through acquisitions ?
Stranger things have happened, but as we have stated before, we particularly favor issues where it is possible to see the future fairly clearly ahead of time and since Azco - AZMN already has proven major inground reserves valued at some $300 Million net, arguably our intrinsic underlying valuation already implies that such a catch-up move is possible. Another point to take note of is what some of the most successful pre-eminent investors of our time have re-iterated over and over again as among the reasons they got so rich:
Any time it's possible to identify a major potential disconnect between market values and real values that are essentially verifiable and quantifiable, buy all the stock you can, because sooner or later the stock price invariably catches up to the true intrinsic value.
So what will be the catalyst that could help make this happen? Look no further than WHT or the other ultra-high performance issues highlighted below that have enjoyed meteoric rises off extended basing formations that are inevitably a precursor to powerful upmoves.
And why might Azco suddenly become the center of attention? Just like WHT and the others - Azco's President and CEO has stated:
"I intend to redirect the strategic future of this company to include identification and acquisition of high quality Gold, Silver and Copper resources".Dr. W. Pierce Carson
President - CEO
Azco Mining Inc
Since Dr Carson is one of the foremost and most accomplished explorationists of our time with a proven track record of not only a string of substantially valuable discoveries over his 33 year career, he's also been the architect of a dozen major projects and therefore it stands to reason he means what he says: Such that, any additional value that might be added through deft acquisitions is likely to not only enhance Azco's current intrinsic value but could enable the company to truly emulate WHT's performance and grow towards a much more richly deserved valuation of $300 million plus. But, again since $300 million represents AZMN's "proven" reserves, (which account for only 5% or 1/20th of our estimated total inground reserves of some 88 Million tons of ore, with potential valuations in the Billions), then it's reasonable enough to assume that with $300 Million being two thirds of our potential goal of $500 Million, it might not take too much acquisition-wise to set us on an upward path towards what really could be a realistic future valuation for Azco. Such heady valuations would put AZMN's share price in the $7 to $12 realm or some 50 times or 5,000% upwards from here.
Richer Pickings in the Pink Sheet GardenThe neat thing about Wall Street is that nobody has a monopoly on the ability to make money from any sector or niche market that can be identified by shrewdness, luck or God's infinite grace. But on Wall St, fortune definitely favors a prepared mind and recently some of the smartest money out there and evidently more well prepared minds have through a growing number of highly respected investors and mutual funds discovered a new "Candy Store" on Wall St that
bigcharts.com calls "The Other OTC Market" or what's commonly known as the pink sheets. If we told you this "other market" potentially is the current home market for two of the top performing issues in the entire World over the past 2 years and trades more shares daily than the NYSE and NASDAQ combined, would that get your attention? I think so. Something big is going on here and the smartest money has already figured it out. Here are some examples.
Health South - HLSH - Demoted to the Pink Sheets - Traded down to 6 cents in early 2003 - Hit $6.50 in less than one year
Many companies that trade on this "Other OTC" market have enjoyed equally spectacular gains, but many of these gains were often preceded by elongated bases, sometimes going back a year or two or longer. Technically, the Golden Rule dictates:
The longer the base inevitably means the larger the ultimate move. Take a look at the incredible performance of Sterling Mining SRLM
This has been a riveting performer that came off a beautiful long rising base, up over 100 times or 10,000% in just a little over one year.
Another beauty is Clifton Mining - CFTN - But in this instance notice the elongated basing formation and what happened thereafter...
Now look at Azco - AZMN today: Notice any similarities? Since the longer the base the bigger the move, it projects Azco to $3 - $4...
The major positive difference with Azco is that it already has the intrinsic value and its stock price has traded at almost $4 in the past, so there are compelling reasons for this issue to return to its former value and potentially eclipse it because the 2nd Golden Rule of Technical Analysis is: Any time a stock recovers back to its previous highs, it tends to at least double the range from low to high after.
As legendary speculator and major fund manager Victor Niederhoffer has been known to proclaim: Elephants like to return to where they once came from and the same can be said of stock prices. Example: Sonus Networks - SONS - Traded at $8 per share in 2002.
And finally: Never say never - Look what happened to recently listed August Energy in just 6 weeks...Breathtaking to say the least...
The market has never ceases to surprise on the upside. Just look at $50 per barrel Oil & Dow 10,000, years ago who'd have thought it possible? As we said at the outset, can Azco go from $5M to $500M Mkt Cap?
Stranger things have happened.................
Blessings
CT
This is not a solicitation to purchase securities. The information contained herein is for informational purposes only. The information contained herein regarding risks and uncertainties, which may differ materially from those set forth in these statements, in addition to the economic, competitive, governmental, technological and other factors, constitutes a "forward-looking statement" within the meaning of Section 27A of the Securities Act of 1933, as amended, and Section 21E of the Securities Exchange Act of 1934, as amended, the Private Securities Litigation Reform Act of 1995 and is subject to the safe harbors created thereby. While the company believes that the assumptions underlying such forward-looking information are reasonable, any of the assumptions could prove inaccurate and, therefore, there can be no assurance that the forward-looking information will prove to be accurate. Accordingly, there may be differences between the actual results and the predicted results, and actual results may be materially higher or lower than those indicated in the forward-looking information contained herein. Further, the company assumes no obligation to update or otherwise publicly revise the forward-looking information disclosed herein to reflect circumstances existing after the data hereof.
Remember back in the day when, "IMO" was enough?
