Hi Claude, It seems to me that Queenstake is very prudent with their cash. After all, most of these projects are being paid for by the j.v. partners, and the only one they are expending money on right now is Guinoloza (and Alamos is paying 40% of that).
You were saying, "No doubt that there is still large potential with QTR... and it could end up back to the $3-$4 level and more if they discover with their partners. But they may also discover nothing and then get back down to $0.10-$0.20 or less, once they used up their cash." But couldn't one say that about any of the spec stocks? That is the very meaning of speculation, and that is why there is a high risk-reward.
By the way, I've been scouting out SWG just a little, and I notice they too wrote off over 6 million in projects this past year. This is the name of the game. Some projects work out, and some don't. The only problem I have with SWG right now is this: yes, they have 30 million in the kitty,(quite a war chest), but if there are a little over 15 million shares out(according to Stockwatch, which is notoriously behind the count) then that is a cash share value of $2.00, but it is trading in the $6.00 range. Don't forget it takes a rise of $6.00 to get a double at those prices. With Queenstake it only takes .46 as of this moment. And to me, Claude, a double is a double is a double.:-)))It's also a lot less of a fall at these levels.
If you look at the risk-reward, the odds are riding with QTR to double well before SWG, unless they had a mammoth discovery; and the same, of course, would apply to QTR were they to have a mammoth discovery. In that event we would be looking at many times a double. I guess it's all in the eye of the beholder and their investment philosophy.
Cheers
Shirley |
