The Globe and Mail questions Timminco’s valuation.

The Globe and Mail responded to Timminco Limited’s (TSX: TIM C$30.50) Heinz Schimmelbusch threatening statements about “going to the courts” to deal with critics by publishing an article titled “Science, technology and probabilities” this weekend.

The article questions Timminco’s metallurgical claims that “it’s not exactly a high-tech process” and stock valuation wondering if it’s worth even $7 per share much less $30. The Globe closes its article by coyly stating “we really don’t want to say that too loudly. We’d rather not provoke the litigious Mr. Schimmelbusch.”

The Globe notes that “Timminco has a $3.2-billion market value, after the stock went up 100-fold in 16 months” and that Timminco was “worth less than $25-million at the end of 2006.” The article states that the run up on a less than $100 million investment “might be the best return on a dollar in the history of capitalism. Astonishing” It also notes that the run up “is based not on the financial results, which are still barren, but a flurry of announcements.”

The article also addresses Photon’s paid for profit forecasts by responding with “Really!” and noting that “we’re not saying it’s impossible” and adding “to derive these sorts of profits from a capital investment of less than $100-million. We’re just saying that investing is all about probabilities, and you’ve got to ask, what is the probability of all that occurring?”

While the Globe has not said that its “impossible” at least one well informed financial expert has concluded, as the Globe noted, “darkly invoke the name of Bre-X” in reference to Timminco’s claims.