September 18, 2007

Dear Friend,

We upgraded Newmont Mining to Overweight and raised our price target to $70 from $40, our 2008 gold price estimate to $800 from $650, our 2009 copper price estimate to $3 from $2 and our earnings estimates accordingly.  The $1 trillion liquidity injection, 0.5% rate cut, weaker dollar and easings bode well as do the absence of any third-quarter copper inventory rise as demand outstrips supply. 

We also updated our analysis of housing permits by individual state, noting that 8 states enjoy 10%-31% gains, 17 states plus DC have no problem and 4 particular states comprise 69% of the ytd decline.  Rural timberland values appear secure, and the "housing crisis" appears concentrated in second home markets or "sleeping bank regulator" jurisdictions.

Progress has been encouraging.  "Hits" on our www.veryindependentresearch.com site operational since September 11th are near 1,000.  Since our September 4th initial email with our subscriber contract details 22 customers have indicated they will retain us, including 7 that came in Monday and 1 on Tuesday.  We have collected one wire transfer, two signed contracts, about 10 in diverse paperwork phases and 9 verbal indications.  A reasonable chance exists of our fledgling entity being profitable in our first commercial month September.

Our emphasis now moves from "covering costs" to delivering "very full" service.  Thus far we have 8 "Full Service" subscribers, 7 limited "Read-Only," and 7 that did not specify.  We have clients in 7 states thus far.  We are a little shy, and don't want to be too pushy with our long-time friends.  Call my phone anytime except from 10 pm to 6 am nor during Steeler games. 

Joe Reagor joined me on September 4th, and Subrina Mahmood will begin October 1st.  My report output improved from about 2 towards 5 per week with one employee.  Our physical plant, my basement, has ample room for at least four employees, but my driveway is a little tight with three visitor/employee vehicles.  If we find an office manager that rides a motorcycle, it will improve our capacity.  While I offered to buy Subrina a motorcycle when she indicated she needed a car, she laughed rather than taking up my offer.

Most seriously, a business problem involves our being overlooked on a few field trips of some companies on the fringe of our coverage.  The Domtar trip to Kingsport , TN filled up before we learned of it two weekends ago.  We retained a consulting geologist to go to the General Moly Mines (once called Idaho General Mines) Mt. Hope and Tonopah , NV sites on Thursday when we heard about the trip from a client this Monday.  It is most wonderful that we can retain a consultant or charter a plane WITHOUT ASKING ANY BUREAUCRAT for approval.  PLEASE TELL YOUR FAVORITE COMPANY TO REMEMBER US and click on www.veryindependentresearch.com for updates.  PLEASE POP ME AN EMAIL OR PHONE CALL WHEN THERE IS A CORPORATE EVENT not posted to the "research travel" tab on our web site.

As we struggle to keep up with our improving client base "marketing" becomes a management issue.  For the current month or so we will not have a "marketing" force as we are getting a very good response from "word of mouth," our emails, our phone calls and Manhattan office visits to old friends.  The " Toyota problem" of quality issues if we grow too fast concerns me.  Our subscriber contract limits us to 150 institutional customers, and we have capped the "Read-Only" category at 75.  Our September 17th seven customer signup day raises the possibility of our "becoming full" or going "on allocation" or  wait-list, which is another reason for us to slow down on the marketing side.   Please let us know if you think we should retain your former Prudential Equities Group salesperson if that individual remains unemployed. 

We deeply appreciate your encouragement and support.

John C. Tumazos 

Copyright © 2008 John Tumazos Very Independent Research, LLC
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Last modified: 05/17/12