mgn

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Oh, boy. OK, I liked the three month chart because of how it was just down, in a straight 45% line, like a bolt of lightning. Not sure what that means in terms of what's happening in the market for the stock, but it tends to get me interested. One year chart is a big, wide wave. If that were a swell in the sea, it would be out at sea, and there would be a lot of energy in it. Massive. Strange that it translates in a line on a stock chart, but there's at least some reason to think it does. So, taking a look at the twenty year chart, it's definitely interesting. It's distinctly energetic. That's a big surge it made earlier, and it was kind of frothy and crackling. And now it has narrowed to a kind of microscopic point, a needle point, on a giant spear head, the kind of point from which a lightning bolt would emerge. These are wave patterns. You can find them all in the sea.

But what, more exactly, is going on here? Six employees. Some tiny amount of revenues each year, but it's inconsequential, just an accounting thing. Surprisingly, $6 million in cash. And they believe they own this mineral property in Montana, the Montanore project. Somebody else did ten years of work on it, but then they transferred the property and all cores and intellectual property to Mining Management, symbol MGN. There's a horizontal mine shaft - it's got a specific name - which they're currently just maintaining. They've invested in a water treatment facility. They are waiting for permits, and then they want to drill another 3000 feet horizontally. Then they're going to "drift", and do "diamond core drilling", and explore this mineral deposit that the government itself (if I understood right) says may contain a certain amount of silver and copper.

All of that is going to cost about $12 million, and what they'll do is produce an assessment. If that assessment warrants it, they'll finance the mine, which will cost $555 million to build.

So this is completely and utterly speculative. There even might not be silver down there, in effect. But they do think there is, and they are actually crawling around under ground, and shuffling papers like crazy, based on that assessment they've made. And if it pans out, it's going to be a big mine. It's a chance to get in on a big mine, possibly, on the ground floor.

And, it's a stock. And that possibility of owning a big mine is causing quite a lot of people to put money into it. It also caused the price to surge upwards, and I mean surge. Now it has kind of surged downward again, but in a quite orderly way. Of course, there's silver down there, and gold, and those things spark the investor's imagination. I think this is going to surge upward again. It's not just the silver and gold behind that. It's the possibility of a big mine. But I do say it will be mostly speculative fever. The ultimate target price is probably around 60, and then we'll have to wait out another down wave. Ten or twenty years out it might be a big company.