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This Gold Rush Just Lawyered Up

The Knife Catcher profile picture
The Knife Catcher


  • Down 39% in just one week.
  • Lawsuit over Escobal Mine could cripple Tahoe.
  • Who said mining for gold was easy!

Tahoe Is Badly Hemorrhaging - Should We Call The Doctor or Priest!?

Risk means more things can happen than will happen”

~ Elroy Dimson

The Knife Catcher here, giving you the up to the minute falling knife report, providing the sharpest coverage of falling or fallen knives in the financial markets. How sharp you ask?! Ginsu cut-through-can sharp! Ok, hyperbolized title sequence aside, Tahoe Resources Inc (NYSE:TAHO) has taken a nose dive dropping around 39% this past week after the Guatemalan Supreme Court issued a provisional decision to suspend Tahoe's license over their flagship mine Escobal. I hear some close to the scene overheard the pilot screaming Bonsai!

(Chart Source: Charles Schwab)

I’m going to explore the who, how, and why of this sharp decline and why I’m still a shareholder in this badly bleeding but not dead yet, precious metals company.

Tahoe Resources Inc., develops and operates mines across the Americas. Tahoe’s mines primarily produce gold, silver, copper, lead/zinc, precious metals, natural gas and petroleum. The company has interests in Guatemala, through the Escobal Mine, Northern Peru, through La Arena and Shahuindo, and various mines and mining projects in Ontario. The company is currently headquartered in Reno, Nevada and has 2,820 employees.

Tahoe was one of those stocks I acquired earlier this year in my search to continue to diversify my portfolio outside the typical REIT, Dividend Aristocrat, and DGI track. At that point after doing my research, I thought I had discovered a stock that was primed for a come back, and surprisingly enough, most of the analysts covering the stock agreed in this consensus; but the market had still yet come around. I was expecting to sit back, wait, and enjoy the modest monthly dividend yield the company paid out, until I was holding onto a two to three bagger, before cashing some of my chips in. I also found

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The Knife Catcher profile picture
I have a new website (http://theknifecatcher.com) -- Hooray! SO, if you wanted to get a deeper dive into my philosophy or just wanted to check it out (there are some easter eggs in there) it'll be updated periodically.Some motivational quotes below, if you ever find yourself bleeding from a failing knife. "Investment success doesn't come from “buying good things,” but rather from “buying things well.” (Howard Marks)"Cycles always prevail eventually. Nothing goes in one direction forever. Trees don't grow to the sky. Few things go to zero. And there’s little that’s as dangerous for investor health as insistence on extrapolating today’s events into the future." (Howard Marks)"The received wisdom is that risk increases in the recession and falls in the booms. In contrast, it may be more helpful to think of risk as increasing during the upswings, as financial imbalances build up, and materializing in recessions"  (Andrew Crockett)“To buy when others are despondently selling and to sell when others are euphorically buying takes the greatest courage, but provides the greatest profit.” (Sir John Templeton)

Analyst’s Disclosure: I am/we are long TAHO. I wrote this article myself, and it expresses my own opinions. I am not receiving compensation for it (other than from Seeking Alpha). I have no business relationship with any company whose stock is mentioned in this article.

Seeking Alpha's Disclosure: Past performance is no guarantee of future results. No recommendation or advice is being given as to whether any investment is suitable for a particular investor. Any views or opinions expressed above may not reflect those of Seeking Alpha as a whole. Seeking Alpha is not a licensed securities dealer, broker or US investment adviser or investment bank. Our analysts are third party authors that include both professional investors and individual investors who may not be licensed or certified by any institute or regulatory body.

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