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Gold/Mining/Energy : Precious and Base Metal Investing

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To: Zardoz who wrote (2285)	3/8/2002 11:50:53 AM
From: russwinter	Read Replies (1) of 39344

I believe you are understating the tremendous rewards available from speculative pipeline or development investing. It is NOT like investing in t-bills nor is it for widows and orphans, but to just dismiss companies "without a PE" or "without earnings" as simply "options" misses the point, and removes some of the best high reward investment vehicles available. I've done it throughout my investing experience in real estate, early stage IPOs, energy, biotech and now mining (NEVER internet, but I may start looking it over as well now). I usually arrive on the scene to pick over the gems from the wreckage after a downturn and buy from "afterthought" distressed sellers, and I've have made a few fortunes from it. I'm like the clean up guy played by Harvey Kietel in Pulp Fiction. This mining junior arena of the last year or two has had (and still has) some of the most fertile ground for this approach in my experience. In fact I've found my returns from the kind of "based on just earnings" plays you espouse to have been rather mediocre at best. What I like to do instead is buy into situations (options as you call them) that I can later sell to "investors" like you at much higher prices, when the earnings power becomes more obvious. Right now there are some good pipeline opportunities opening up, and not just in junior mining (see link). Message 17140045 The key as always is to pay right for these, spread your company risk some, and be patient. I find it interesting that tech bubble pundits like Motley Fool (where were they during the bubble?)have all of a sudden decided that pipeline plays without earning or that require some capital outlay are taboo. In fact many of these plays have become the targets of "dumb" shorts. More fuel for the fire I say. They (and I think you) will be proved wrong and broke in the process.

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