ECU Silver Mining Inc. (TSE:ECU)

[basserdan]

(From the ECU Silver board at Agoracom)


GATA's Bill Murphy Comments on ECU

posted by EsquireH on May 06, 11 09:24PM

...at the end of today's Midas Report ( http://tiny.cc/my3rs ):

It is not easy, this investing in some of the smaller market cap gold/silver companies. My largest holding is ECU Silver (72 cents Cdn.), and has been the dog of dogs. My initial entry point was 23 cents around 12 years ago. It is the only mine that I ever visited and that is where I met CEO Michel Roy, who is a very talented geologist.

After beginning to deliver on silver resources with drilling success, the stock went to $3.50 Cdn when silver was only $12, only to plummet back to 43 cents before recovering after the crash of 2008, only to fall apart again while the price of silver skyrocketed.

What a total bummer. While I own physical silver and some other silver stocks, this was far and away my way of capturing the mega silver move I saw coming. Heck, they have 420 million silver equivalent ounces already, which is why I made it my big play. I couldn’t have got it more wrong in terms of making money on the giant silver move. I might as well put my money in a diapers company. If I had only listened to Tony Sherman, the acclaimed photographer who took that historic picture of the screaming Vietnamese girl on the cover of Time or Newsweek as she fled a napalm attack. He bought something like 2 million shares of ECU at a ½ penny when the company was in real trouble over a decade ago. He sold them at $2.95 because his technicals told him to do so. And guess what? With some of those proceeds he is putting the two daughters of that Vietnamese girl (who lives in Toronto) through college.

But, alas, I stuck with ECU. While a horrendous decision on my part so far, I will get a pretty good idea how this investment will turn out in end over the months ahead. It is my hope that it will be another Samex and trade that way, and then some. WHY…

Michel Roy has long believed the 420 million ounces they have already found is an offshoot of a massive sulfide 600 meters to 1,000 meters below the surface. Over the next week and couple of months that will prove out or not. If so, look out above.

ECU is massively shorted and I mean MASSIVE. Samex was heavily shorted also. The firm has also been victim of a viscous smear campaign and it has worked to a large degree. Watching ECU go down this year as the price of silver went bonkers was aggravating to put it mildly. It led to Ranting Bill instead of Ranting Andy. Perhaps it is time for the tide to go the other way. If the next massive sulfide work results are very encouraging, it could set off a buying panic among those shorts, like it did when Samex hit.

My bet is they hit, which is why I bought more ECU shares the past couple of days. I am going to be a very happy camper or on the warpath. One thing for sure, patience is called for when investing in certain stocks in this sector.

The prices of gold and silver are going MUCH MUCH higher. It is only a matter of time before the entire precious metals share sector goes bonkers as the investing public piles in. It is my hope that the likes of Kirkland Lake, Seabridge, Samex, and ECU Silver are leading the way in the months ahead.

The gold/silver shares are under Nervous Nellie selling pressure too. The XAU only went up .61 to 202.19. The HUI fared little better, up 1.84 to 535.12. Get ready for some serious upside action in this sector very soon.

It is times like this when it is so helpful to know what GATA knows. Raids like this week are almost always attacks by The Gold Cartel to slow down the price advance of gold and silver and to take advantage of vulnerable speculators. The problem for these low-life bums is they do not have enough available physical gold and silver to prevent the price from going right back up again. In a way they compound their problems on attacks such as this one because the lower prices stimulates demand a great deal.

Enjoy the weekend and get ready for some fireworks on the upside in the very near future.

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