McCoach: “A Penny Stock Safe Enough for your Portfolio”

By Travis Johnson, Stock Gumshoe, March 26, 2008

This is a recent teaser from Greg McCoach, who writes the Mining Speculator for Angel publishing and also has a new service that tracks his personal portfolio. We looked at the first stock he teased from the eight he chose for his initial personal portfolio, but now he’s teasing another one … let’s check it out.

That first one, by the way, the “Rupert’s Paradise” silver mine owner, has fallen over the last three months even as Silver, it’s main ore target in that mine, is up about 20%. McCoach has picked some good performers in the past, though it’s been about a year since he had a teaser pick that really performed (he isn’t covered by Hulbert’s and I don’t have access to his portfolio, so I have no idea what his overall performance is … he claims, not surprisingly, that’s it’s super duper awesome). The subscription you’ll need to pick up if you want his full report on this company is Greg McCoach’s Insider Alert, which will run you about $2,000 (on special markdown from $3,000, of course).

Or if you just want the name of the company and some Gumshoe blathering, read on!

This is a new one, though, an Argentine miner that trades over the counter (though they may soon be on the Venture exchange in Canada).

I had a reader send in the solution to this one, but let’s look at the clues to make sure he was right.

First, though, a little whetting of the appetite from Mr. McCoach:

“I want to tell you about a site visit I recently took to the southern most portions of Argentina. The site lies in one of the country’s most remote and isolated stretches. I logged nearly 24 travel hours to reach it. In short, I was blown away by what I witnessed after I arrived… and as a result, I immediately bought into the company’s stock. So let me disclose – I own this stock in my portfolio.”

And he tells us why he owns it — it’s “undiscovered”, it has an extensive drilling program in place that they can pay for, and there’s potential for years of new discoveries and development on their properties.

The mine site is in a remote area of Argentina that includes some other significant mines, according to McCoach:

“The project is located in the Deseado Massif, Santa Cruz province, southern Argentinian Patagonia. It is 40 km NW of the world class gold/silver epithermal Cerro Vanguardia Mine owned by Anglo Gold – Ashanti. The area is now one of the most important mining regions in Argentina….”

and …

“Multiple systems of mineralization appear to be at work, including a gold/silver system, a zinc/indium system, and a polymetallic system featuring zinc, lead, indium, silver, gold, and copper. What we have here is a truly rare find, with unlimited upside.”

Well hey, “unlimited upside” sounds pretty nice, doesn’t it? Maybe they’ll find diamonds, too, or oil!

I just made that up. Sorry.

Indium is apparently quite rare and in high demand from some high tech industries, so that’s a big deal, but McCoach intimates that they’re likely to be going after gold and silver first, because it’s easier and can generate cash flow to do more exploration and development. I expect the fact that there are other gold mines around might help with the infrastru