Power Maxx Blog

Timminco (TSX: TIM) is among the handful of small cap growth stocks that I currently hold in my porfolio. This company was the darling of the TSX last year, making a gain of over 7000%. Since then, it has returned to the spotlight, being further and further devalued by the continued global economic crisis and panic selling.

The main reason for the jump in Timminco’s share price last year, was the fact that it developed a process to convert normal metallurgical silicon into solar grade silicon. This was very interesting to the solar world as the demand for solar energy is constantly on the rise, and a cheap way of producing the systems to harness this is an almost godsend.

This process has been criticized left right and backwards, but it finally looks like Timminco is able to produce, and for the past few quarters has been shipping its product to solar cell manufacturers world wide. With a 2009 output target of 14,400 metric tons, it is projected to have a significant income in the 2009 fiscal year.

The reason that Timminco has been devalued so significantly is partly based on fear, and partly based on disappointing earnings. Both have worked towards pushing Timminco’s share price to a lowly $3.00 a share, well off of its 52 week high of $35 a share. Although this is a huge hit to the pocket book, those that are confident in the companies ability produce are holding on tightly, and buying up shares at these now discount prices.

The only real difficulty that the company faces for 2009 is the ability to bring on the promised new production lines at a rate of 1 per month. By doing so, they will be working towards meeting and exceeding their goals of 14,400 MT a year production. Many analysts have reduced their 12 month targets, while a few solid believers in the company still maintain price targets in the range of $30-$50.

You can read the actual article at the following link:Article. I am one of those that is a firm believer in the company and their ability to produce, but alas only time will tell the fate of Timminco. I am not too concerned though, as the market across the board has been punished to varying degrees, and it is a well known fact that Timminco is a heavily manipulated stock while it is still in the ramp-up stage.

Some of the other growth stocks that are on my radar and have also been hammered are the following: Bankers Petroleum (BNK), BIO MS Medical (MS), Birchcliff Energy (BIR), and Absolute Software Corp (ABT). All in all, I am long on all of these stocks, and am confident that over the next two years they will all recover to their previous levels and valuations. As of right now, however, it is time to start snapping up these companies as fast as your bank account will allow.

Many people say not to try to catch a falling knife - I say that if I’m long on the stock, I’m going to buy the shares anyways, so I might as well cost average down. Here are two useful links for more information and discussion on Timminco LTD.

Stockhouse Bullboard for Timminco
Google Finance Page for Timminco

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