Tahera Diamond Corp. – Stupid ***
moneyrelations :: Aug.09.2007
Just like Barry Bonds’ new home run record, I need to put asterisks beside Tahera Diamond Corp. and put it into the Hall of Shame for Stupidity. In a news conference yesterday, the company announced that in the first six months of 2007, they lost $31.7 million at its Jericho mine in Nunavut. I finally caved and put this dog down. I sold my shares at 45c to salvage what I could. For learning or entertainment purposes, the following describes my thought process and what led to my breaking point.
I knew they were going to have a news conference yesterday. The share price had gone up a few cents from the previous day in anticipation. I thought about selling but I didn’t want to do anything “hasty”. I wanted to take my time to learn about the business and see if there was anything positive to cling onto.
Counter argument: The learning curve is too steep. There’s no use deluding myself that I am going to learn the business. I’m not a geologist and I’m never going to be one.
I knew from previous years, the price usually goes up during the winter. The frozen ice roads make it easier for transport trucks to go to nowheres-ville.
Counter argument: The company isn’t going to make the money back on a stinking ice road! They have nothing going for it and the price can drop even further!
Heck, I already lost so much money, why not ride it out?
Counter argument: Still had over a grand left…
I didn’t want to sell in a panic.
Counter argument: Duh, I should have panicked a long time ago.
The price of Tahera dropped another 11c yesterday. If I had sold on the upticks on Tuesday, I could have salvaged even more money. This has been a most expensive mistake and hopefully, I’ll learn from it. Now, what to do about Forest Gate and Wi-Lan before they also implode on me…
Investing, Stupid ::
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TAH has always been a gamble. If you looked at their projection information and did the math with the current cost per tonne and the rough diamond market it was easy to see this mine isn’t going to make money until next year at the earliest. I’m still in, but I’ve only got a minor amount of cash in.
Tahera is not an investment, it is pure speculation right now.
CD
Hi CD,
And that’s exactly why I bailed… They have nothing going for it and are running out of cash. I still could salvage 1k to use elsewhere. Time to move on.
I held this stock for a short time before they neg spilt a few
years ago then i sold out as i did not think that it was a good move.I am looking at getting back in now due to 17 CENT
price.if your a long timer holder you likly got in even lower
and have seen a good ride for your money with all the chance to profit take along the way.I believe that if they hit the mother load there will be a lot of very rich stock holders out there.The big companys that have put there money behide this adventure know the possibility is real thats why they are in there.Lets remember diamonds are forever.good luck to those who wil go down with the ship before giving in.ps any cmments on buying in at this time or even increasing your position
Hi Brucee,
Thanks for your comment.
I’m not going to touch Tahera again even with a drill bit.
$143 million over the first nine months of this year is a lot to lose. It has a market cap of 36.71M now. Sure, it’s dirt cheap and Teck Cominco might be able to see some value in it but I’m not going to jump back in with this off-chance.
I’ve lost too much money already so why not invest in other (more) predictable opportunities?
Have been a long time investor, and had held out hope till the end.
Though they still have a shot (a long shot) with the offering, I can’t help but be skeptical when I see over 260,000 shares from the same brokerage house being sold off.
Anyone know anything about what any of the insiders are holding/still holding?
Oh wow. I had wondered why I was getting searched on Tahera recently. I didn’t know it had dropped to 7 cents!
Sorry, Steve-O, no clue as it’s been a very long time since I followed the company. Good luck to you.
Nobody can guarantee the success when running such a business or when depending on it. But that doesn’t mean that we cannon increase our success chances buy training ourselves to be more vigilant to changes and predictions. After all, this like a definition for business.
Definitely, CFD. Due diligence. I’m due for some diligence on my part