boom time, page-9

Hi Tommy

It's basically saying that VMS is "good buying" right now due to its current fundamentals - I've read their (buy sell signals) reports before and while they are technical indeed they don't really give a true account of why the SP of a co is undervalued - in VMS case due to various permitting and start up risks.

Anyone need any confirmation of what happens when you venture into SE Asia look at IAU.

Found a world class resource and then had it stolen from them by the indo's.

IAU was formerly Taipan Resources - Hamish would know it well since he worked there.

Taipan Resources spun off various assets namely - Casposo deposit in Argentina (now Troy TRY) and Paulsens Deposit in WA now run by NST.

The spin offs have been MORE SUCCESSFUL than the parent(both pay dividends) and the shareholders of the parent didn't benefit - instead they provided all the capital and then watched the potential returns get sold off to be finally left with nothing once their main game Tujuh Bukit was stolen from them.

Meanwhile they never informed shareholders that Tujuh Bukit was never likely to be mined due to its location...

See here :

http://hotcopper.com.au/post_single.asp?fid=1&tid=1944495&msgid=11381284


So I say it again... I agree 100% with Peteey - but also see Stephens point as well as Sly's...

Have a look how many consultants are employed by the company (VMS). There is a very long list of them. These all cost considerable money to employ and I'm sure their input in necessary to ensure things run smoothly. But it costs a lot. Not much seems to be happening "in house" which is usually more cost effective.

Meanwhile VMS does not appear to be exploring in TAS at present - if they are, they are certainly keeping it low key.

This begs the question... Does VMS management know something that shareholders do not ?

That's one, only they can answer.

Diversify by all means, but you need to start generating self sustaining revenue before you start kicking rocks overseas imo - when you have a project effectively on ice until the all clear is given I can see the attraction in looking elsewhere while the waiting game plays out - but just cutting the fat and preserving cash atm would be a better idea imo - because at these prices - dilution will be very painful if anything goes pear shaped.

JMT.