Pediment Represents Good Value

J. Taylor's Gold, Energy & Tech Stocks (06/05/2009)
"The bottom line with respect to Pediment is that the company should be able to increase its gold resource numbers significantly with additional drilling in the coming year. It is blessed with approximately $15 million in cash, mainly because management was frugal with its financial resources over the past year. It severely cut back expenditures even though its two projects beg for more exploration drilling. We think the potential exists to at least double the existing 1.4-million-oz. resource on the San Antonio Gold Project, and the potential for a substantial high-grade deposit on the La Colorada appears very strong. Given its current gold resource, cash position, and exceptional upside exploration potential, not only on the two projects mentioned above but on a host of other exploration prospects in Mexico not mentioned, we think this company represents good value for speculative investors who can afford to tie up capital over the next year. If positive indications of production from La Colorada are forthcoming and we get some good exploration numbers, we think this stock could easily double over the next year, assuming of course the bull market in gold and gold shares is not abruptly aborted, as occurred in the fall of 2008. As always, for the purpose of a disciplined diversification approach to investing, we strongly suggest investors set a maximum allocation of 5% of their portfolios at time of purchase of this or any other stock."

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