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100ozRound (29.38)

Taseko Mines gets hit hard by news that Prosperity was denied

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November 02, 2010 – Comments (37) | RELATED TICKERS: TGB

Taseko Mines was down nearly 30% after hours on reports that the Prosperity Gold and Copper Project was denied by the Canadian Federal Government.

http://www.ec.gc.ca/default.asp?lang=En&n=714D9AAE-1&news=59F03FA9-63AD-4EED-A14F-04BBF32906CF

I'm still holding/buying though. I think they have a backup plan and TGB without Prosperity is worth much more than it is currently trading for.  P/E of 11 based on a $6.50 stock.

Lots of shorting and selling today followed by more tomorrow I'm sure.  Hold tight; it's going to be a bumpy ride!

37 Comments – Post Your Own

#1) On November 02, 2010 at 6:44 PM, kdakota630 (29.59) wrote:

Beautiful!  Thanks for the heads-up.  I've been keeping an eye on this and a few other miners looking for just this type of opportunity.

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#2) On November 02, 2010 at 7:12 PM, Valyooo (99.44) wrote:

How many times is this going to happen before you concede that is manipulated? I don't say it to annoy you, I respect you, but you're gonna get burned by these violent swings, much of which happen before the news...stay away

I'm not biased against tgb. Tgb is actually the stock that I made the most money from in my entire short investing life.

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#3) On November 02, 2010 at 7:43 PM, Pennyperson (< 20) wrote:

TGB has gold, copper and MOLY-which everyone seems to ignore. The stock will rebound - High hopes, naw...just for those wanting a quick fix for a double. Stock is sound and agree with 100oz..and will by more **after** the drop.

JMO

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#4) On November 02, 2010 at 7:44 PM, 100ozRound (29.38) wrote:

kdakota - De nada, glad to help!

 

Valyooo - I get your concern and I don't dismiss it. You brought that up last time and it actually made me double check myself. I'm averaged in TGB at around $.90 so I'm still very content with my returns so far but I don't want to speak for other people that weren't able to average in as low as I did. 

I'll concede that you have a valid point about people intentionally opening massive short positions in the stock (or selling off massive amounts of shares that they own in order to get back in at a lower price) and that massive selling will move the price quite a bit.  We may have technical differences in our respective definitions of the word manipulation?

I'm staying in though because I believe in the long-term prospects.  I look at events like this as a gift to get back in lower.  It is still higher than it was when it dropped so much back in July.

 

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#5) On November 02, 2010 at 8:09 PM, Valyooo (99.44) wrote:

Didn't the price drop happen before the news came out? THAT'S my concern. You got in low; that's awesome, I'm very glad u made a lot off of them, seriously. But why throw money away by buying more now if it keeps reacting before the news? Is that's not what happened this time then my bad but its what happened the last two times. Tgb is an awesome company but its kinda like gambling at this point

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#6) On November 02, 2010 at 8:16 PM, Griffin416 (99.98) wrote:

If you are an investor, especially with your low cost, you should be safe. But for anybody who has bought this in the last 10 months or so, which I assumed is a lot, is getting hurt because of this deceit. About 500 people alone on the CAPS page green thumbed it will now be in the red.

GERN is another one of these stay away stocks that Valyooo is pointing to. It is just so scary to know that your fellow stock holders know so much more than you do.

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#7) On November 02, 2010 at 8:36 PM, 100ozRound (29.38) wrote:

Valyooo - today it actually dropped after the news came out.  It was only down like .02% at market close and then the news came out and it dropped like a rock.  I think there will be a good amount of selling tomorrow followed by short covering and it will be back above $6 before too long.  I really think that there is tremendous value at these prices.

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#8) On November 02, 2010 at 8:38 PM, 100ozRound (29.38) wrote:

Holy SH>>>>>>

Thinkorswim is now quoting TGB at $6.48 - market close price.  I'm going to have to look in to this....

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#9) On November 02, 2010 at 8:44 PM, Griffin416 (99.98) wrote:

100oz, hate to push the issue, but remember this blog: http://caps.fool.com/Blogs/tgb-what-the-heck-happened/414664

How about what happened on 10-14-10, where intra-day the stock went down to 4.58, during a "normal" day for copper.

They knew the mine news 2 weeks ahead of schedule...convinced yet? Huge insider information trading.

I am not a rumor or a fear monger at all, just pointed out the issue brought up by Valyooo with 2 recent "facts"

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#10) On November 02, 2010 at 8:51 PM, 100ozRound (29.38) wrote:

Griffin - I'm not disagreeing, in fact I actually have conceded that something fishy may have been going on.  But today the stock did, in fact, drop after the news came out.

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#11) On November 02, 2010 at 9:00 PM, topsecret10 (< 20) wrote:

Remember that flash drop a few weeks ago ? It dropped undr 4 1/2 In about 5 to 10 minutes then came back . Somebody knew something. This stock Is being manipulated with Inside Information for sure. Very scary....   TS          Says proposed mine would have damaged environment

* Taseko shares drop 25 percent in post-market trade

OTTAWA Nov 2 (Reuters) - The government of Canada has decided to block the development of Taseko Mines' (TKO.TO) controversial copper-gold mine in British Columbia, Environment Minister Jim Prentice said on Tuesday.

Ottawa's decision -- based on "concerns about the significant adverse environmental effects" -- overrules British Columbia's provincial government, which had granted permission for the Prosperity project to go ahead.

The news hammered shares of Taseko Mines, which fell 25 percent to $4.89 in after-market trade in the United States.

Steve Parsons, an analyst with Wellington West, said Ottawa's ruling is a major blow to Taseko that potentially diminishes the value of the company.         http://www.reuters.com/article/idAFN0215397320101102?rpc=44

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#12) On November 02, 2010 at 9:02 PM, 100ozRound (29.38) wrote:

Here's Taseko's response:

  November 2, 2010, Vancouver, BC -- The Federal Minister of Environment has this afternoon announced the Prosperity mine project, 'as proposed', cannot be granted federal authorizations to proceed.

Once the Company has had the opportunity to fully evaluate and understand the process whereby the Federal Government came to that conclusion, contrary to the Provincial Government decision, we will be in a better position to evaluate our options.

Russell Hallbauer, President and CEO of Taseko, stated, "We are extremely disappointed by this decision, not only for our shareholders but for the communities that were relying on the development of Prosperity to help offset the economic situation in the Cariboo-Chilcotin. Our next steps will be discussions with both the Federal and Provincial Government's to look at options so that this mining project can move forward and meet the criteria that the Federal Government deem appropriate."

For further information on Taseko, please see the Company's website www.tasekomines.com or contact:

Brian Bergot, Investor Relations - 778-373-4545, toll free 1-800-667-2114

Russell Hallbauer President and CEO

 

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#13) On November 02, 2010 at 9:03 PM, topsecret10 (< 20) wrote:

http://www.fool.com/investing/general/2010/11/01/do-the-shorts-know-something-you-dont.aspx

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#14) On November 02, 2010 at 9:04 PM, Valyooo (99.44) wrote:

My TD watchlist (which always has the fastest changes, showing after hours trading right away) shows TGB ending after hours at 4.56

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#15) On November 02, 2010 at 9:06 PM, topsecret10 (< 20) wrote:

  Where's Sinch ?   ......   :)  

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#16) On November 02, 2010 at 9:07 PM, 100ozRound (29.38) wrote:

thanks valyoo - TOS was showing the same thing when I left work but when I got home, it's at $6.48. Must be a glitch.

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#17) On November 02, 2010 at 9:12 PM, 100ozRound (29.38) wrote:

TS - I imagine he's probably getting a flood of emails right now.

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#18) On November 02, 2010 at 9:19 PM, Pennyperson (< 20) wrote:

This in not a huge deal, it was a 50/50 chance. Is it over by no means; is the stock/company worth more than the drop-Yes. If anything, thirsty hungry, greedy, mouth watering takeover canidadtes are eating this up as they know more than we = they get a better bang for the buck. Not worried at all- too much gold, copper and moly in them there hills. Think of it this way – nows the time to buy more, so you can make mo $$

JMO

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#19) On November 02, 2010 at 9:49 PM, Valyooo (99.44) wrote:

Other than prosperity, whats new about TGB that would warrant a take over at 4.56 that didnt get it taken over when it was under a dollar?

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#20) On November 02, 2010 at 9:52 PM, topsecret10 (< 20) wrote:

  If you look at the Reuters Post above. One analyst that covers the company says that the stock Is worth about $4.58 Canadian If you back out Prosperity....    TS

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#21) On November 02, 2010 at 10:15 PM, Option1307 (29.69) wrote:

This is why I don't play these types of stocks in RL, only in Caps. While they do have some decent aspects about them, TGB is too wild/manipulated/etc. for me personally.

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#22) On November 02, 2010 at 10:27 PM, Pennyperson (< 20) wrote:

One analyst - give me a break - Valy they no what it's worth=called a wating game or why didn't the stock drop back to under a buck. Do you think all hinges on Prosperity...did the gov say an ultimate NO...look at what they already have, copper, gold and moly = it makes a difference for thirsty hungry China and the world in general.

It won't go back to a buck - too much $$$ to be made.

If your paraniod sell it (if) you own it. Or buy BAC,C, IRE or AIB. Ha

I'd buy more TGB and NBG - of course that's me..the spec guy

 

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#23) On November 02, 2010 at 11:29 PM, Valyooo (99.44) wrote:

I like NBG.  I sold TGB months ago.  Why isnt it under a dollar?  Because everybody except the insiders loves the stock, and they dont see the manipulation.  Not every company producing copper gold and moly is a good investment...FCX is much better.  It probably won't go back under a buck, but youll probably mistime it since you dont know whats going on like the other do. 

 

C and BAC will both be good long term investments.  AIB and IRE is pure speculation...but atleast I know the risk/rewards, because there is no manipulation.

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#24) On November 03, 2010 at 1:10 PM, 100ozRound (29.38) wrote:

Sinch responds:

http://www.fool.com/investing/general/2010/11/03/tasekos-dead-end-to-prosperity.aspx

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#25) On November 03, 2010 at 4:01 PM, Griffin416 (99.98) wrote:

The big money managers who owned TGB are now shoving their "asset allocation" money into IVN. Typical in this biz.

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#26) On November 07, 2010 at 8:02 PM, Bays (30.12) wrote:

Stick to TC!

My favorite ;)

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#27) On November 07, 2010 at 8:40 PM, 100ozRound (29.38) wrote:

Bays - I like TC too!  I'm looking at buying TC calls.

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#28) On November 07, 2010 at 10:03 PM, Bays (30.12) wrote:

I've almost doubled on my warrants!  I should have bought some calls too, but for some reason I haven't got around to activating my option trading account.  

I am really regretting not buying calls on SLW.  It's been a great last couple weeks!  I'm sure a lot of ppl are kicking themselves for selling, including insiders.

 

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#29) On November 07, 2010 at 10:29 PM, 100ozRound (29.38) wrote:

Congrats!

I bought SVM and EXK calls (and sold a bull put spread on EXK) on Monday the 1st.  Both calls are up over 100%

It was a good week!

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#30) On November 18, 2010 at 1:35 PM, mattdaddy21 (< 20) wrote:

Hey 100oz,

This might be a bit off subject, but you seem to know quite a bit about the precious metals stocks.  I have quite a few stocks I'd like to pick on here that are listed on Toronto.  I've noticed many are available under '.pk' ticker symbols.  Is there a rhyme or reason to how the ticker symbols are determined?  An example would be T: TGLDX.

Thanks, Matt

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#31) On November 18, 2010 at 5:14 PM, 100ozRound (29.38) wrote:

Matt - I'm not sure how they determine the actual tickers on the pinks.  I know that some companies like to make a play on the ticker symbols to correlate somehow with the nature of their business or a play on the company name.  Some of the pink or BB listings usually have their initials or combination of their initials as their ticker symbols.  Or are you asking why some are listed as .pk stocks and others aren't?

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#32) On November 23, 2010 at 12:04 PM, Bays (30.12) wrote:

Fairly large insider sell after the news....  150k shares by one individual.

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#33) On November 25, 2010 at 9:22 AM, 100ozRound (29.38) wrote:

And a possible federal leak of information.

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#34) On November 25, 2010 at 1:11 PM, Bays (30.12) wrote:

I wouldn't doubt it, but probably will never be proven.

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#35) On December 18, 2010 at 9:49 PM, simplemts (< 20) wrote:

I live in Hillcrest close to Northpark on Park Blvd by Robinson Ave.  How about you?

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#37) On December 18, 2010 at 10:39 PM, 100ozRound (29.38) wrote:

I used to live in North Park right off El Cajon.

You're right around the corner from me. I'm off the 163 on Genesee going towards Clairemont.

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