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Strategies & Market Trends : Ride the Tiger with CD -- Ignore unavailable to you. Want to Upgrade?

To: Claude Cormier who wrote (42885)	2/9/2006 11:38:30 AM
From: kacy_in_LA	Respond to of 312830

<But I don't think it is right to to say that illiquid mining stocks are death traps. There are many that are not.> I'll agree that I overstated the case. Let me put it another way ... given the choice between a risky, liquid junior and a risky, illiquid junior (regardless of the sector), I think the only smart move is to go with liquidity. I understand that you feel CKG is a low risk, long-term play. This may be so. But my studies suggest that junor gold stocks generally make 90% or more of their moves in 10% of their trading days. Other times, the invested money is just sitting there dead, hence the opportunity costs. For people like me, timing is everything and fundamentals only serve to identify potential stocks to time. I think that CKG may one day be a low-risk trader, but it is too illiquid right now and I do not tolerate downtrends as you can never tell where they will stop (not that CKG is in a downtrend at the moment, as it is not). For me, long-term investing means months at the most ... just a different perspective borne out of my experiences.

To: Claude Cormier who wrote (42885)	2/10/2006 10:55:14 AM
From: Sultan	Read Replies (1) \| Respond to of 312830

Question for you (I am trying to learn how to value these plays).. So over and above the cash and properties, would one apply some dollar amount to 1M ounces of gold to come up with what some one might pay for this company if they were being bought out ? or if one were to hold, I assume future value is strictly on if they can increase that 1M number.. I am just trying to figure if I want to buy this is a good point to enter? I have been out of this sector completely.. My last decent position was in Yamana in 1997/1998 which I sold for a loss after Bre-X fisco.. Come to think of it, I still own some Bro-X in my RRSP.. Aaargh..