Silicon Investor (SI) -- The First Internet Community

STOCKTALK

We've detected that you're using an ad content blocking browser plug-in or feature. Ads provide a critical source of revenue to the continued operation of Silicon Investor. We ask that you disable ad blocking while on Silicon Investor in the best interests of our community. If you are not using an ad blocker but are still receiving this message, make sure your browser's tracking protection is set to the 'standard' level.

Gold/Mining/Energy : An obscure ZIM in Africa traded Down Under -- Ignore unavailable to you. Want to Upgrade?

To: TobagoJack who wrote (496)	11/17/2002 11:01:24 AM
From: que seria	Read Replies (1) \| Respond to of 867

Jay, to be sure I'm clear: I will be buying Canadian junior gold explorers during tax loss season. I have only shorted NEM, the market proxy, for a short trip down when it looked weak and was nearly at the strike price of calls I hold. I understand your point about risk; the law of averages dictates that several junior explorers are destined to find nothing economic and go down hard, or to zero. Recognition of that can be protracted, so you can usually cut losses, but there certainly will be losses. My approach to minimizing risk is to buy a basket of carefully chosen Canadian junior gold explorers and count upon the winners to run enough to more than make up for the ones that go to zero, and the others that sink before results have me giving up on them. This spreads the inherent risk while giving me attractive valuations and huge upside leverage to a rise in the POG, assuming a deposit that is both defined and big enough to be a sort of "call" on the POG. I like to buy early, catch the wave. Of course, in buying junior explorers "value" depends upon the degree of speculation in projecting an economic deposit, and then a mine, as needed to generate a return. If you seek safety on a stock by stock basis in addition to a portfolio basis, you can accurately say that buying a junior explorer isn't an "investment" and isn't at all safe. In making the ubiquitous risk/reward tradeoff, I look for preliminary indicators (drill holes of course, but even grab samples, prospective location, proven managers) that there is a good chance of a sizeable economic deposit. That is the stuff of the Precious and Base Metals thread in this subject area of SI. I just can't buy the senior producers at these valuations when I know (1) the best quality juniors will fly under the very circumstances necessary to elevate the seniors; and (2) if the POG falls back for a while, the best juniors will sink with the seniors but will have price support based upon the exploration prospects that caused people to buy them to begin with. In other words, with juniors I get exploration upside as well as POG upside. I can count upon favorable exploration news in a large enough basket of well-chosen juniors more than I can count upon the POG. Oh, and to stay on topic :-), here's a piece on gold in Africa: smedg.org.au and two more juniors with African properties: Nevsun biz.yahoo.com Birim biz.yahoo.com

To: TobagoJack who wrote (496)	11/17/2002 11:38:32 AM
From: que seria	Respond to of 867

I meant to include Tan Range news in that last post: biz.yahoo.com It has been strong: stockcharts.com[r,a]wbclyiay[pc10!c20!c40!b200!i!f][vc60][iub14!uk14!lc5!la12,26,9!lp14,3,3!lf!ll14][J6704679,Y]&listNum=6 as has Nevsun: stockcharts.com[r,a]wbclyiay[pc10!c20!c40!b200!i!f][vc60][iub14!uk14!lc5!la12,26,9!lp14,3,3!lf!ll14][J8270377,Y]&listNum=13 Moydow with prospects: biz.yahoo.com but not such a good chart: stockcharts.com[r,a]wbclyiay[pc10!c20!c40!b200!i!f][vc60][iub14!uk14!lc5!la12,26,9!lp14,3,3!lf!ll14][J6704716,Y]&listNum=6 Of course, Ghana & Mali are far from Mugabe: graphicmaps.com