Al's Insights – Wed 9 May, 2012

The Guys From EKM Discuss the Junior Mining Market

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Cory FleckSteve Stransman

  1. On May 9, 2012 at 5:14 pm,
    Tony says:


    Time get a brief update from bill at RPM to explain todays announcement in english

  2. On May 9, 2012 at 8:08 pm,
    Big Al says:

    Okay Tony,

    Will take care of this in the morning.

    Big Al

  3. On May 9, 2012 at 9:06 pm,
    Jed Davis says:

    Hey Everyone: You don’t seem to get it but it seems crystal clear to me why the mining shares are down down down. Mining shares are still seen by most as a speculative play unlike oil and computer chips. They are last hired, first fired. There is a lot of redemptions right now because 1) investors are scared and want cash and 2) investors were on margin ( a no-no for precious metals) and were shaken out. What were good buys 3 months ago are now screaming buys. And I hate to say it, but there is still a fear and bad taste that investors had when Gold rose dramatically in the late 1970s and lost a lot of value in subsequent years. THis has to change eventually (probably sooner than you think) because of world demand for bullion. Also, senior producers will need juniors to meet the demand. I do not like what is happening right now any more than you. But that is sure to change. Probably faster than you think.

    • On May 10, 2012 at 9:26 am,
      Cory says:

      Hey Jed,
      I completely agree that juniors are long considered the most speculative plays in the market. With more and more money leaving the market in general, through the 2 points you made, the most attractive companies to me are the ones that have a market cap under the cash they have in the bank. I see a big consolidation coming in the juniors industry as some are predicting.


      • On May 10, 2012 at 10:14 am,
        Jed Davis says:

        Cory: Excellent points. I guess the one thing we cannot figure out is sentiment. When I had my business, i could never g=figure out why the phones were dead and then all of a sudden, they rang off the hook, all at the same time from different parts of the country and different time zones. Best Wishes.

    • On May 11, 2012 at 8:21 am,
      Dan, calgary says:

      When investors start losing their principle they have to sell their stocks to pay rent. Now with the JPM chain of events investors will likely sell even faster to front run another liquidity crisis in the TSX.V. There is more fire than match left. Ouch!


  4. On May 10, 2012 at 5:37 am,
    James Flannigan says:

    Money is made at market bottoms not at tops.Many JRs are trading as if they have no asset value.Case in point Premium Exploration.When it had no gold a few yrs ago in inventory it traded as low 6 cents .Now the Friday footprint has a million oz inventory with a step out foot print suggesting 2 million oz.

    Investors should never lose site that the market is there to serve you not be your guide.Stock prices are always at odds with valuations.The trick is to arm yourself with facts when investing and buy when no one wants it.


  5. On May 15, 2012 at 10:29 pm,
    Matt says:

    The problem is that these stocks are being valued at the paper COMEX price at best. So if the COMEX defaults, the paper price of gold will plummet to almost ZERO like a bankrupt stock. What will happen in the early days of a COMEX default ? The daft public and institutional money will probably dump all of their mining stocks to ZERO. It can happen