F E AT U R E D A R T I C L E
“The Best of Both Worlds” Matmown, Inc.
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n today’s turbulent times, investors are seeking a way to take advantage of the ranging movements indicative of the current economic climate while at the same time maintaining a measure of safety for their investment. In our investigation into this “best of both worlds” investment approach we identified several sectors that have the potential to offer this type of combined growth and safety, in addition we have found a few companies that we feel have not only the relevant asset bases but also sound business structures and management teams necessary to quickly develop their companies’ assets and create growth in this economic environment. One such company identified is Matmown, Inc. (MTMW.PK, www.matmown.com). Matmown is following the model of devel-
oping its asset base within two of the world’s top three commodities - oil (along with its related commodity natural gas) and gold. Investors are aware of what has occurred over the last two years in both gold and oil. The growth curves enjoyed by both commodities have been a direct result of fundamental economic forces driving volatility in global currency markets, rising global debt, and (in the case of oil) overall supply and demand factors exacerbated by growing regional geopolitical instabilities. Before we discuss why we feel Matmown, Inc. is poised to take advantage of these two areas of growth, it is important to first “drill down” and discuss why we feel these two commodities, in particular, represent a unique investment opportunity in the current economic environment. Let’s first look at gold. Numerous fiat currencies throughout the world are facing intense inflationary pressure as debts owed by many of the world’s industrialized nations are having an increasingly negative impact on these currency values. As such, the price of gold has consistently moved higher as banks and financial managers not only seek a safe haven for their funds but also seek to strengthen the value of their overall investment portfolios. This has created a market effect whereby companies that have the ability to profitably mine and produce gold are able to grow revenue and increase their profit margins, thereby providing greater shareholder value to their investors. In addi-
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tion, as the cost to extract gold within the USA has become more difficult and cost prohibitive, as a result of increasing regulation, mining and exploration companies have in turn sought out resource-rich jurisdictions that afford more favorable cost structures, have stable governmental infrastructure and less restrictive regulations in order to grow business operations. These are the primary reasons why many mining and exploration companies have expanded mining operations (particularly in precious metals) into South America, Central America and Asia, among other favorable jurisdictions. Any company that has established a presence in one or more of these regions, with profitably producing, or ready for production, mineral properties, is uniquely positioned to reap significant benefits from this global rise in the price of gold, at a greater rate than at any other time in the last fifteen or more years. Properly structured, a mining and exploration company that can rapidly and profitably establish and expand its monthly gold production capabilities will have the greatest opportunity for significant growth in the current economic environment. Let’s now look at oil (and its ancillary commodity, natural gas). The sophisticated investor has been following oil for the last two years. Given the current challenges in the Mideast and the supply limits due to global geopolitical and economic factors having varying impacts on these oil producing jurisdictions, as well as other factors
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