To follow on from my post about selecting stocks that could be...

To follow on from my post about selecting stocks that could be multi baggers, and why EUC fits the bill, let's have a look at one of the key characteristics:-

So, what are the key characteristics of multi baggers?​

1. It must be small. Sheer size works against great further growth.

It stands to reason that a micro cap, or small cap has a much better chance of markedly increasing in value if it is successful than an already established major.

Especially if, like EUC, it has solid funds in the kitty, so that CR's are not going to be in the picture until some serious development is ready to be implemented.

A company that has already experienced considerable growth may still continue that growth for some time, expecially if well managed, and it maintains the unique advantage/s against it's competitors. But the rate of growth in SP will be difficult to maintain vs a company in the very early stages of growth.

With a market cap of around $40 million, EUC certinly fits the desciption of "small" - especially when there is $18 million in the bank. That means that the value of the company's main project at Dobsina, where the underground drilling has just commenced is rated at around $25 million.

And that is not ascribing any value at all to the Jouhinev (Finland, Co- Cu- Au-Ag) ground or Kolba (Slovakia, Co-Cu-Ni-Ag). Then don't forget the two other Slovakian Co-Cu-Ag mines acquired in May - both pretty close to Dobsina, at Kotlinec and Medzev.

Some might say that EUC has already been a 5-bagger from where it is now - maybe there is good reason for the pullback to the 5c range Is that as far as it goes?.

Well, you need to do some research to decide why it has behaved in this way. Is there any part of the projections and claims made that have not been fulfilled?

Each to their own - but my thoughts are that the pullback has nothing to do with the fundamental values that I could find. They seem to have more to do with some very agressive promotion on this forum which might have given the impression that things were going to happen faster than was reasonable to expect, and the fact that the short term traders that were attracted by that promotion decided they didn't want to wait, or couldn't wait, or saw some other opportunity they would rather chase.

The fact that an officer of the company was seen to have an association with some of those promoters has also caused some problems as far as sentiment is concerned. But from my scrutiny of company presentations and announcements, while there may have been some slippage caused by weather related matters (in a region new to the management), the basic premise is very much as set out in early material.

It is of interest that the current SP is very similar to that when the first announcements and presentations were made of the potential of the comany's projects in Europe, and of the plan to target minerals to supply the expected growth in EV battery manufacture in Europe - planned to grow exponentially over the coming few years.

In the meantime, new shareholders have invested $20 million, the company has repaired several kilometres of adits at the Dobsina mine, have carried out the first 4 lines of IP (which showed a positive correlation to known in-ground mineralisation, and indicated areas outside the mine that could also contain the same mineralisation). And currently, after careful examination of remaining mineralisation in the walls of the adits, the first of a promised very significant underground drilling campaign is underway.

Apart from those who entered very early, before the general market had much idea about the project and it's potential, new holders can enter at the same price as those who purchased their stake a year ago. While some may see the intervening period as a bit of a false start, the fact is that this level of SP offers an oportunity to get in "at the start".

This next few weeks should produce the first results from the underground drilling campaign. It's starting to get to a very interesting period. But don't get too carried away - there is a huge amount of investigation and analysis before the total potential is outlined.

At this point, don't expect the Chairman to be making comments on social media that are not outlined in company announcements. While this may have occured at earlier stages, keep in mind that since that period a significant number of institutional investors have come aboard, and perhaps more importantly, the ASX has intervened several times with other stocks when Tweets and other social media comments have made known news that was not already announced by the company concerned. If EUC officers have not already been "shoulder tapped" on this issue, they will certainly now be aware that such actions break the rules, and consequences will follow.

So while Tolga has popped in to check out progress, we should see announcements from EUC before getting news "unofficially", (and to only social media followers).

The promise of significant news during this period can certainly be anticipated. I am one of those hoping for some progress reports and updates on just what is found from those first drill results. Not sure of turnaround on those results in that part of the world.

So, a potentially significant opportunity awaits those on board what is defnitely a small company.

EUC certainly meets the first key characteristic of a stock that could become a multi-bagger - it is definitely small.


​