TM Editors' Note: This article discusses a penny stock and/or microcap. Such stocks are easily manipulated; do your own careful due diligence.

Do you know John Zang? Well, he is the CEO of the Morro Bay Resources Ltd. (MRB-TSV) and I spoke with him for a while. At first, we talked casually about silver and gold and then he started talking about the kind of work he and his team were involved in, something that captured my attention. Why? Because everything he told me about his silver company, right from the management team involved to the progress of their projects, which indicated that his company was positioned extremely well and was about to get better. Needless to say, I started doing some background research on John Zang.

I found out that John was not new to the resource sector; he'd been in this industry for the last fifteen years in various capacities, such as, an officer or a director of junior companies. He had a knack for finding the type of companies, which could benefit from his services at the right time, and he also knew how to offer outstanding value to the shareholders of these companies. No wonder he has generated five times share value growth in less than three years with most of the companies he has been involved in.

The secret behind John's success

Sure, he has talent, but more importantly, he knows the power of having proper management, a must-have component every company that wants to succeed requires. People like John are good at not just finding the kind of companies they want to get involved with, he also knows the right time to enter the market. Apart from that, he is also passionate about this industry and has the necessary skills and required connections to create success.

Morro Bay is a fresh and new company (a little over 2 years old). Per my analysis, I found out that at their height they were valued at just eleven cents. And because the volume has been low (very few shares changing hands) I do not feel there will be much overhead resistance and because of that share price should be able to rise once investors catch on to the strong position this company is in. As such, I am sure there are plenty of investors who would be more than confident about investing in this company going forward. The previous drilling rounds have been very successful and I expect this last one to be even more successful as it will add more gold and silver ounces to their already massive reserve.

For investors, Morro Bay is offering an investment opportunity for those interested in a silver company. At a unit subscription price of just $0.05, they are offering a private placement investment opportunity, which consists of a common share as well as a share warrant. Their ultimate target is to raise about $1,500,000.

If words such as 'warrant' or 'private placement' sound foreign to you, let me explain them clearly: if you take part in this private placement you are essentially paying for the expenses incurred by the company on the final round of drilling as well as the other miscellaneous operational expenses. Your potential profit? Well, you are getting shares at prices below the present market value. This way, it is a win-win situation for you and the company. On the other hand, a warrant offers you an opportunity to lock-in the share price for you for a certain length of time. Let us say that now you pay 5 cents for one share of the company; you can continue to buy shares from the company at the warrant price of 6 cents per share for a certain length of time. What if the market price of the share increases? Well you can buy your 6 cent warrant shares and sell them or a hefty profit!