<<..they do not like to touch a small cap company where the liquidity would be a problem. The other factor is the vulnerability to a hostile takeover bid. >>
You are right again...it will be a factor...but I don't really mind a stock being takin over at a higher price than I pay...and I don't see it as a problem if institutions are not buyers in the open market...they are most of the time in the private placements.
<<I remember Golden Sceptre and Goliath j.v'd with Noranda, when they discovered their Hemlo Gold deposit,(one of my really big wins) or Corona at that time, also in Hemlo.. Small cap compared to today, but it was the discovery that sent it skyward.>>
Yep ..remember these days..I wasn't in...unfortuntely. Remember also Stikine Resources (and another partner) when they got that hole on Prime's Eskay..Creek... a very similar story...low shares out..huge discovery..price explosion.
<<HOWEVER, there has been a sea change since then in Queenstake>>
Well, am sure you are right with your evaluation of QTR's management. I don't know them..but they seem to be doing things right.
<<... but a lot of the players here are smaller players and
can not afford, or are not interested in a company when it reaches those levels. >>
And it could be an error. When money pours in a play...it is the quantity of $$ on the buy side vs the market cap that make it go up....not the stock price. Of course, this is probably more true on a longer term basis. On a short term basis...(hours and days)...the smaller the stock price is...the easier it can be moved I guess.
<< At that point generally eastern investors and funds were buying from the speculators for the long run investment. I think that mentality is still around to a great degree. >>
Yep ..I think it is...Guess that is why there are several great bargains on the TSE that are not attracting any volumes. The Minefinders, Cumberland and Metallica, despite similar market caps and great projects with resources or reserves already indicated, aren't attracting the $$ they deserve, even if they are also exploring.
The trill investors get when they await drill results that could send a penny stock soaring...is indeed a very good incentive to play it small and go for the big thing..instead of the sure thing.
<<I really think these forums play to the speculator. They like penny stocks with potential of multiple returns. The reason so many lose so much is probably more to do with not understanding which ones are just a "market" play, and which ones may actually have real potential for those high returns. Even then you can be wrong. >>
Right again. And investors should understand that the odds of a large discovery are extremely low. I certainly have no problme understanding why one investor would like to have a QTR or two in its PF. WHat I fail to understand is why some speuclators play only these small ones....IMO, that is a receipe for total failure.
Still, it doesn't mean that getting into value plays is a sure receipe for major gains....you know how these markets are cyclical. There are times to buy, tines to hold and times to sell. I feel that now is the time to buy the value plays...at least for a few months...
<<Sorry for rambling, Claude, but I tend to do that. >>
No problemo... I like it...It shows that you know your way around and you have been there in the good old times.....lets hope we will see time again.
CC
P.S. Good show in the silver camp..today. |
