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Gold/Mining/Energy : Gold and Silver Mining Stocks -- Ignore unavailable to you. Want to Upgrade?

To: ild who wrote (832)	4/25/2001 12:19:42 PM
From: Claude Cormier	Read Replies (1) \| Respond to of 4051

<People say that juniors move last, so it may be possible to book some profits from seniors and move money to juniors. What do you think? > True... assuming you have the good timing You will find good and bad stocks in all categories. Juniors will move faster if we get that bull simply because they are much more undervalued than seniors. Assuming a move to $350-$400, seniors will do on average 75% (more for DROOY and HGMCY), but many juniors will do several hundred percents. The question you should asked your self is how do I positioned my portfolio.. and this depends on both your expectations on future metal prices and your tolerance to risk. I like to have juniors because they are not only depending on the prices of the metals. Discoveries can and do impact on their price. The key factor when selecting them is to pick up those that have assets to backup their current market capitalization. I also like the high leveraged of the DROOY and HGMCY, but am worried of what would happen to these high costs producers if gold move to new lows and stay there for a few years.

To: ild who wrote (832)	4/25/2001 1:55:51 PM
From: russwinter	Read Replies (3) \| Respond to of 4051

<People say the juniors move last.> I think that's part of the pervasive negative sentiment and demonstrated mythology towards these stocks. The higher profile names that I mentioned not only move in the rally, but have much higher betas. Plus you have more event driven possibilities than the seniors: Claude mentioned discoveries and exploration results. Although it's been a while (Pangea for me), buyouts and takeovers needs to be put into the equation as well. Sometimes liquidity dries up and these stocks trade poorly. And they can be victimized by indiscriminate dumping when someone with a few shares pulls the trigger. Vice versus when investors try to catch a moving elevator going higher. And on occasion if you are alert there can be a very short delayed reaction (a few hours or a day). Case in point is my experience with Metallica the morning after their late afternoon news release regarding a spectacular discovery at El Morro. I found myself the only buyer at 29 cents on the open. In a classic snooze you lose syndrome the buyers showed up in force later in the day and week. Sometimes excellent results as opposed to the spectacular are ignored all together: Freewest at Clarence Stream recently, or FGX after the first Marlin reports. I think you have to have a developer mentality with these stocks. Dealing with the illiquidity, sloppy selling by doing homework and preparation while others snooze is actually a big part of the attraction for me in the junior sector. At some point one hopes it pays off.