LaMancha Resources (LMA-TSE $1.20) All the above companies have one thing in common-I personally took a very large equity position in them. Now the same can be said for LMA. While there’s absolutely no reason for anyone to mortgage their house and/or chase this stock up, I do want to tell you why I did this for myself.
LMA has been spearheaded by Walter (Wally) Berukoff. Wally’s main business is running http://www.redlionmgmt.com/ . Red Lion has been active around the world in the real estate and resource industries. Wally was the founder of both Northern Orion Resources (NNO-TSE $4.66) and Miramar Mining (MAE-TSE $5.69 ), where he helped raise over $450 million dollars. Both these companies were kick started by having major assets placed in them. Wally has done this again with LMA recently http://www.lamancharesources.com/ . Effectively what has taken place is the precious metals assets of a major French subsidiary were placed into LMA via a RTO and that French company is now the largest stake holder of LMA. Like anything else, this deal took time and after many months of being halted, the stock began trading not too long ago. It ran up at first but began to decline on the back of the recent gold correction. I believe because there has been virtually no promotion, which made the stock ill-liquid, a seller of size hit a no-bid market and drove the share price under a dollar. I was buying much higher but was the buyer of a large block last Friday that appears to have removed whatever that seller had left (as of now).
In the meantime, the company has been undergoing a complete review as it gets its feet wet as a much, much, bigger concern. It’s an emerging producer with large-scale exploration potential. The bottomline is this, I think Wally’s past involvement with MAE and NNO, plus the French Connection, is likely to become a very promoted story in 2007. It fits a need serious individual investors and institutions look for production, while offering blue-sky exploration as well. I believe Wally can get in doors other companies can’t because of who he is and what he has done in the past. Chances are a substantially higher valuation can be put on it than is currently being afforded it. This is why I’ve have been so aggressive. Also, because it already has producing mines, a higher gold price should be beneficial to the share price. The company has over $40 million in cash, no debt and 99.99999999999999% of mining share speculators haven’t even heard of it-YET!
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