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

To: Claude Cormier who wrote (130098)	9/5/2008 8:20:28 PM
From: Condor	1 Recommendation Respond to of 313013

Posted 25 August, 2008 on www.silverseek.com Trading at Cash Value – Or Less In another sign that investors are shunning metals and mining stocks, publicly traded companies are now trading at their cash value – or less. Essentially, this means the market is valuing properties – both exploration and producing assets – at zero. Look at Mega Silver (MSR-TSXv). With a stock price of 43 cents, it has as $13 million market cap – and cash of about $13 million. Even the bigger exploration companies are getting no respect. Nautilus Minerals (NUS-TSX), a high profile and novel explorer searching for mineral deposits on ocean floors, has almost $300 million cash, and trades at a market cap of $225 million. Even farther up the food chain, revenue producing companies are getting close to cash value. Altius Minerals (ALS-TSX), which has a royalty on the Voisey Bay nickel mine, has a $200 million market cap, and cash of $175 million. “It’s definitely a sign of the times,” says Ken Carter, CEO of Mega Silver, who is working on three different silver exploration properties this year. He adds, however, there could be a silver lining to this market situation. “If this market drags on, it will become easier to get deals done, and we’re lucky as we have a lot of cash compared to some companies.” With metal prices well down from their highs of only a few months ago, the financing market is very difficult for mineral exploration companies. For value investors, it’s time to start buying selectively, says Richard Reinhard, editor of the financial newsletter Growth Stocks Weekly. He focuses on the junior mining market. “Patient investors who understand the market can make a lot of money now,” he says. “These companies will not rocket or rebound, but if you buy the strong management teams you know they will use their cash to acquire a property the market will like. But few investors in this market are that patient.” goldeditor.com

To: Claude Cormier who wrote (130098)	9/5/2008 10:39:07 PM
From: tyc:>	Read Replies (2) \| Respond to of 313013

CC You sure called it right on a stock I like. And in doing so you have explained much of the market decline to my satisfaction. What has caused the decline ? The answer is "selling". And what is causing the selling ? Is it a decline in the fundamentals ? I don't think so ! People are selling because the market has declined and they want to avoid the possibility of future declines and the pain that goes with it. Isn't it the fall of prices that has already happened that is the prime cause of present selling ? Even professionals are getting out fearing that liquidity will dry up. Some of them MUST sell because of fund redemptions by people taking their assets to safer but barren dry land. Of course they can rationalise that the commodity bubble has burst.... (with copper still over $3 per lb ) Sure there may be further declines in price LOL ! I have never known a stock market yet that hasn't been subject to that risk. There will always be a declines in price even in the gold ! But how asinine to sell because prices have already declined. I've said it before and I say it again; the market is an ASS ! I see opportunity ! (The ideas in this posting are not original)