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9/29/09

Troy Resources (TRY.to) (TRY.ax): The slump continues

The big bad boardroom battle over at Troy Resources (TRY.to) (TRY.ax) has done this to the company share price over the last couple of days....
....with another 6.8% lopped off in Australia last night and the Canadian stock likely to go under C$2 by the end of play this morning. For some bckground of the whole shebang, check out this report in The Australian.

As a TRY long I'm watching the issue carefully, but mainly for two reasons:

1) Will it cause any delay for the Casposo mine construction?
2) Will it give me a decent place to buy more stock?

The first one is the key to the drop. The boardroom spat seems to be centred on the way TRY wants to raise the cash to build its new mine, so while there's dissent there may be a delay in the forward movement at Casposo. Nothing sure yet, but if things slow down it can't be good in the short term.

The second one is the way to play this, in my opinion at least. With people panicking out of the stock still, the drop is still fast and there's no point in catching the falling knife. But if we can (hopefully) identify the bottom at some point, the chances of adding to this company with great fundies and long term prospects may turn into a trade to remember. DYODD.