Please Note: Blog posts are not selected, edited or screened by Seeking Alpha editors.

Endeavour Silver, Minco Silver and their Quest for the IRRESISTABLE OBJECT



I wonder if that was what the  last CEO that tried to take over one of Bob's companies thought to themselves. It didn’t work the last time and it didn’t work this time.

Both of “Bob's” founded companies were the “IRRESISTIBLE OBJECT”, and still are.

Endeavour Silver used to be a company I loved to hate due to its extremely high per oz. Cost of Silver from it's Mexican operations. They cleaned up their act, got their ducks in a row and became a 7+ bagger off the 2009 bottom, and a good job was it !! I picked them several times as a long term core stock. So far so good. Seventy [ 70 ] Million shares, 75 Million oz of Silver in known Reserves, $ 7 bucks a share there-abouts, market cap about $482 Mil. Thus about every dollar of market cap is backed by 1/7th of an oz of silver


Minco Silver always left me unable to wrap my head around what they did, with seemingly huge reserves in their Fuwan project. Forty-eight [ 48 ] Million shares, 156 Million oz of Silver in known Reserves. About $ 6 bucks a share, market cap about $293 Mil. Thus about every dollar of market cap is backed by about ½ oz of silver.


So theoretically, MSV is 3.5 times better than EXK viewed that way. That was some down and dirty math, but those are the facts as of the last official estimates.


So onto the IRRESISTIBLE OBJECT both pursued by the above two companies. First, EXK or EDR.To [ on the TSX ], made what was considered a low cash offer, promptly trounced and thrown out the door unceremoniously by “Bob” & Co., to the cheers of his shareholders. Just like he did almost a decade previous to another lo-ball offer, and his shareholders went wild then.


Essentially “its the same, only different”, as wherever and whomever he is, “Bob” “knows the territory” just like the Music Man.  What is different is the OBJECT has a different name than last time. Probably that is all. The OBJECT in question has under 70 Mil shares out and probably that many Oz in known exploration settings it currently holds, that is an open secret inside the industry. Main difference is that the stock price went 50% over the offer price overnight. So much for lo-ball bids in this environment. Given the skinny share price of an UNKNOWN Irresistible Object, it would have doubled EXK's reserves for about 10 cents on the dollar. Yes the “OBJECT” probably gives you 20-30X Bang for the Buck over MSV or EXK.


And yes they are under the “Threshold” to be mentioned here, but then again, Pittsburgh Penguins Hockey ALL STAR Sidney Crosby was a Tim Horton’s [ THI ] “Tim Bits” player in 1993. No doubt he too was too young for the NHL “Threshold” as is the OBJECT, but no doubt was already scouted.


MSV was a bit more circumspect, merely offering to JV the “find”, but of course at great benefit to themselves. I am sure this is going to play out, with everyone vs.. “Bob”. I don’t think anyone is going get “The OBJECT” cheap, “Bob” has been around too long for that, and his track record speaks for itself, over and over.

I like MSV and EXK, but I like The OBJECT better for speculative moves.  My opinion is that there will be massive developmental value realized, and should the OBJECT go on to be a producer in its own right, there is great room for organic growth as well as serious escalation in the silver price.


Disclosure: I am long “The OBJECT”. Associates are Long EXK and I just listed MSV 1/3/11, initially as a short term trade.

I listed “The Object” in late 2010, and a year previous Email will get a copy of the Issue in which the “OBJECTS” is listed

Disclosure: I have no positions in any stocks mentioned, and no plans to initiate any positions within the next 72 hours.

Additional disclosure: I have a long position in CREAM MINERALS, on the TSX Venture Exchange the stock alluded to as the IRRESISTIBLE OBJECT, but that I cannot mention by name here as it is priced under $1.00.