.Jay Taylor, Sell at 13 cents ! in the Nov. 14, 2014, edition of Gold, Energy & Tech Stocks, says sell Barkerville Gold Mines Ltd., recently 13 cents. He previously said buy on Nov. 12, 2010, at $1.45 and on June 21, 2011, at $1.66. He then said sell on Feb. 17, 2012, at 84 cents. Assuming a $1,000 investment for each buy, selling at 84 cents would have yielded a loss of $945. The newsletter editor got back into Barkerville on Aug. 13, 2014, at 40 cents. Assuming a $1,000 investment then, selling at 13 cents would yield a loss of $695. Mr. Taylor likes Barkerville's potential but is put off by its finances. As of Aug. 31, the company had a "whopping" working capital deficit of $25.1-million, of which $11.7-million is due to Sprott Resource Lending. The loan covenant with Sprott requires Barkerville to have positive working capital of at least $1.5-million. As long as Sprott thinks that Barkerville's B.C. gold project is worthwhile, it will likely keep the money coming, muses Mr. Taylor. Yet Sprott has a responsibility to its own shareholders and may decide to bring down the axe. Mr. Taylor concludes that Barkerville was "clearly a mistake." Sell for the tax loss and use the proceeds to buy Sandstorm Gold, Dynacor Gold or others on his list.
I have a few shares left that I am booting today. I did good on the trade but it is not a company to be long on. |
