Excellent analysis, once drilling starts with "any" of my juniors, I switch from half-full to half-empty. I have been in this game too long to play the half-full. Half-full can cost you money. I think if you pole the threads you will find the majority of "long in the tooth" who play "high risk speculative stocks" treat the stock as "half empty".
I would be astounded, amazed, bewildered, shocked, and concerned if Middelton wasn't swinging from the highest trees, yelling accolades about this project. Does he own any shares??? I'd tree swing too.(half full)
I believe in proceeding with caution. I also believe that what I say on this thread has little to no influence on the stock direction. A stock will move up or down on its own "merits, if it has any". Knowing that, my cautious approach since joining this thread has caused me to sell when the price of the stock overshot its results. Giving me a very nice profit. Once the "massive sulphide" thing occurred we had a feeding frenzy that was rarely seen in mining stocks. I purchased during pullbacks and made significant precentages on the rises. So why do I not buy this stock at these bargain prices. Because after all this hype, they still only have a single massive sulphide hole. So what is different about this stock at $6.10 and $1.10 ?? Plain and simple "drill results".
There are five stages of high risk speculative investing.
Stage 1- pre-drill ownership of a stock.
You assess the merits of the property by getting independant geologists to look at the geological analysis provided by the company geologist. You invest based on a "highly probable target- the glass is half full
Stage two - the drilling commences (half full to half empty switch occurs) Drill result comes in with bonanza grade or massive sulphide results on one hole. Stock shoots up. You sell enough to get all your money back.
Stage three - stock works back and forth based on rumour, Can-a-crap recommendation, Leishman recommendation etc. etc. etc. during this time you day trade to recover more profits. Next set of drill results don't give you any reason to believe massive sulphide continues. YOU BAIL OUT!!
Stage four - the stock corrects downward, during this process brokerages come out with "strong retail interest" statements which in itself is the kiss of death. Because they can't think of anything else intelligent to say so they can dump there shares.
Stage five - Stock bottoms out - thinking switches from "half empty to half full" you purchase shares and wait for the next set of drill results. Goto Stage 1
papa smurf
aka
the Chief |
