Replies to post #26164 on Traders Cooperative

[haystax]

GPXM gets positive mention from Steve Saville (May 9th):

Potential new stock selection: Golden Phoenix Minerals (OTC: GPXM). Shares: 148M issued, 157M fully diluted. Recent price: US$0.495

GPXM was a member of the TSI Stocks List for a few months during 2003. We exited the stock at US$0.53 in October of 2003, crystallizing a gain of 130%.

Subsequent to our exit the stock embarked on a major downward trend due to the deadly combination of a large correction in the gold sector, poor management and unexciting assets. It eventually bottomed at around US$0.10 during the first half of 2005 and has since been recovering (see chart below). In addition to benefiting from the sector-wide strength in metal stocks over the past two years, it now has new management and an asset with the potential to generate some enthusiasm within the speculating community.

GPXM's main asset of interest is its 60% stake in the Ashdown molybdenum mine in Nevada. This project has a small high-grade resource with significant expansion potential. Furthermore, unlike the vast majority of 'moly' plays GPXM is already generating cash flow from production of the metal. The level of production is expected to ramp upward over the coming months.

Some information on the Ashdown project's profit-generating potential was contained in an article posted at resourceinvestor.com earlier this week. The article focused on GPXM's JV partner on the project (Win-Eldrich Mines), but GPXM got a brief mention.

GPXM also owns the Mineral Ridge gold project in Nevada and the Northern Champion molybdenum project in Ontario. Neither of these projects are near-term producers, but they provide some additional leverage to gold and molybdenum prices.

Last but not least, we like GPXM's chart. The stock recently broke-out to the upside from a 12-month consolidation pattern and stands a reasonable chance of breaking above long-term resistance in the mid-0.50s within the next few months if the overall market environment remains positive.

The reason we've headed this section "Potential new stock selection" is that we will only add GPXM to the TSI Stocks List if it becomes available at US$0.42 within the next several weeks. The mention in the resource-investor.com article caused the stock price to spike upward over the past two trading days, but the knee-jerk gains that occur in response to such articles are often given back. You might decide to take a position at a higher price, but be aware that we may never mention the stock again at TSI unless it trades at the above-stated level.