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

To: Amark$p who wrote (64897)	11/1/2006 12:54:37 PM
From: Amark$p	Read Replies (1) \| Respond to of 312808

EPM Gold Mining Stocks: In Ground Value vs. Market Value Kenneth J. Gerbino 321gold.com Therefore don't despair when your stocks are being sold off by uninformed or scared or fast buck traders and investors. If you know for sure that the company already has found the minerals and the engineering studies by the company or an outside company are positive, then you should be able to know what the company will be worth in a few years. That number should be more valid than the short term market value. Your success in investing in companies is making sure the cash flow from all the hype and hoopla in the future years will support a higher share value. 10 million ounces in the ground is meaningless if it is too low grade or too expensive to mine. A company that will have to sell a lot of stock and dilute the value of existing shareholders if it is overpriced already, has nowhere to go but down even as they become a successful mining company. If they are already overpriced you better know it. Mining insiders and people that study the engineering reports and can make the many calculations that are necessary to figure all this out are the ones most likely selling when you are buying or buying when you are selling. The key to this business is to find companies that have already found the goods in the ground and are developing quality and large projects. I am always comfortable with a three year time frame to production and at least a 3x return using much lower metal prices and a reasonable multiple of cash flow. Even if a lot goes wrong - and it usually does - there is plenty of room for capital gains.