Stephen Simpson, CFA
Long only, growth at reasonable price, value, research analyst

Thompson Creek Walking A Very Fine Line

While a lot of investors seem to love David-versus-Goliath underdog stories, I think they too often forget a key detail - what makes that story so special is how unlikely the outcome was; normally David gets absolutely pasted and ends up either with a bunch of tubes coming out of him or in a box. In the case of a stock like Thompson Creek (TC), then, I think investors are often too willing to look past the serious operational and macro risks that go capacity expansion stories at small miners.

That grim opening probably suggests that I'm bearish on Thompson Creek Metals. In point of fact, I'm not. I think Thompson Creek is a very interesting speculation at this point....

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