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Gold/Mining/Energy : Gold and Silver Juniors, Mid-tiers and Producers -- Ignore unavailable to you. Want to Upgrade?

To: marcos who wrote (26550)	11/29/2006 11:03:45 AM
From: ogi	Read Replies (1) \| Respond to of 78419

I have held AUN since 05. Yes a rest is in order, then the next leg up in Jan/Feb. Spm looks good, don't own it. Soh is pissing me and will suffer tax loss selling but that means an opportunity. Cheers, Ogi

To: marcos who wrote (26550)	11/29/2006 11:04:50 AM
From: TrueScouse	Respond to of 78419

marcos: I just revisited two of CC's old favourites -- Cumberland and Southwestern. They've both come down a long way from their peaks, and as TSX Tier 1 stocks above $5, both are marginable at 70% of value. So I couldn't resist... <g> I took a few profits in some high flyers and then spent more than three times as much on CLG and SWG. If you're comfortable with margin (which I am), this could be a very profitable investment IMO. e.g., For $10,000 cash, you buy $33,000-worth of CLG and SWG, and the broker lends you the 70% or $23,000. If they both double in the next year or so -- which is a good bet if the gold bull market continues -- then the $10,000 cash outlay becomes $66,000-worth of stock, which would be a very nice return. :^) Downside of course is that they go nowhere and you're paying interest, or far worse that they slump below $3 and cease to be marginable. In my case I'm prepared to take that risk because I've got other stuff I could sell if necessary. But I doubt that's going to happen and I still really like the prospects for CLG and SWG -- CLG because it's a prime TO target, and SWG because in addition to its massive Boca project it also owns a big chunk of Zincore. This is a high-risk trade and everyone should do their own DD and also look carefully at the risks of using margin. When I post about buying junior mining stocks on my credit card, that will be the time to sell everything! <g> Best regards, Howy