trh next door to pmm the next tlm, page-5

plough, im with you on many of your points. You are one of the few on hotcopper that rrally has his feet planted firmly onthe ground.

yes, alot of ppl are riding the momentum of the iron ore price and future price increases .

But I think that unlike URANIUM, its easier to VALUE an iron ore company. Uranium mining is something which is not that common . Many U specs are trading on HUUUUGE prospective PEs ala the tech boom! Look at PDN just for an example, and it is a producer! Whats the PE on that one?? Whats the PE on ERA??

The little ones like BLR or WME or WMY - how on earth fo you value them??? Based on future earnings? What PEs are they trading on??? Its like the tech boom!

Iron ore, you can easily come up with an EPS forecast for many wannabe players! We know the iron ore price is set to go UP this year and NEXT YEAR.

SO you have a 2yr window for 'trades'. Sure therell be a little profit-taking, but if the price os set to go up next year too, you can hold well into the next year and ride the fluctuations. OK, on the speccy ones, you might wanna take a little profit here and there, BUT, you can VALUE the EPS of iron ore companys quite easily knowing the price and the cost parameters and you can add shares to the capital for DILUTIONARY scenarios!

TRH , after a big drilling capaign will either shoot up to over $1 easy, or it will lose a little ground.

In 6months time, with a couple of drilling campiaigns under its belt, if the results are good ala YML or FRS , you might see the share price well over $1 given the small market cap!

So its got MULTIBAGGER POTENTIAL.

the access to PMMs infreastructure will be worked out in the end of the day - money talks! And quite frankly, if they can prove up a decent resource, PMM will most likely form a JV or partnership or take them over, because PMM is running out of iron ore! They have something like 5 years left!

So it all looks good.

And unlike Uranmiums, its easier to value and CAPEX is low.

IO price set to go up for 2009 too.

you cant really go wrong.