Not really prioritized, as I think to go the grassroots route, one needs a package, and the expectation that some may be duds. The advanced stage companies have been the best performers so far, but if 300 plus can stick, the grassroots that can get decent results might really get hot. It's a tougher area to bet on though, because there often aren't good fallback positions and the level of expertise for the speculator is demanding.
That being the case it makes sense to look for the inexpensive multi-prospect plays. Certainly WTC has that, IMR does, AHR also has Fox River. BGI has the royalty and Bui. NGT and GNG have big multi-target districts and I think SUL does too. With that fallback position, when the first round results disappoint like with GNG, it's not the end of the line and in fact may be a buying opportunity. The key is to be patient and disciplined on when (quiet) and at what price (low) to buy. The other arena is the company formation situation, where the insiders are putting in their low priced bets and capitalizing the enterprise. We should really be talking about managements more here, because they don't exactly put out baseball cards on these guys. Although I don't think we are at the phase where the scam artists are on the scene, I'd like to see a good list from somebody on who the players really are. Jim Steele at MI does that some, but other opinions are sought even by me, as I really don't know some of the history. The other red flag to watch on start ups are all the warrants and just too much cheap stock being issued. |
