Trophy Resources Inc (TRSI)

[lowman]

Why buy and hold TRSI?

Recently, management returned 27M shares to the TA. This signifies no intention of serious dilution in the near term. Management has also stated these levels are too low to sell shares at, anyways.

Management funds projects thru 'creative financing', eliminating a need to use new shares.

TRSI, with near immediate revenues, will have 'earned income' to help finance hardcosts and progress.

Management is easy to talk to, and considers shareholders as 'partners', as opposed to 'lifestyle providers'.

Management has OTC status plans, though 2007 is the soonest that could be expected.

Management displays an aggressive desire to grow, thru the acquisition of old, and in many cases, producing wells.


When one considers the management's stated goal of 1250 bpd, this equates to an annual revenue of approx $27M @ 60. p/bbl. Granted, though this is a sizable goal, management shows diligence towards making progress in that direction.

Most of all, TRSI has a scant $1.5M market cap....incredibly low for the position they have in the sector they are in, and even moreso, for a company with a business plan projecting upwards of $25M p/yr.

At those production levels and a 40M o/s, that would equate to earnings alone of better than .60 p/s, minus costs. Factor in a P/E of 8 (fair), and TRSI could be, hmmm.....

Since I hate to give projections, I can only say TRSI looks VERY attractive.


GLTA Longs!!!