Monday Views from Chris Temple and The National Investor
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Just the nature of the beast. It is called HOPE!
To me, Seabridge is a long-term, relatively low-risk call option on the gold price. As it just showed again, it can raise all the money it needs at, yet again, a price much higher than market. Yes, lots of gold exploration companies burn through money, don’t do much, and then go kaput in markets like the recent one. Most of them, though, did not have some 50 million oz. of proven and probable gold reserves, HUGE P&P also of silver and copper, AND, now, the appearance that there will be no governmental/environmental opposition.
It would be a different kettle of fish is Seabridge were producing full-tilt and losing money. Those in the company now expect the day to come when higher metal prices, etc. will allow KSM and other of Seabridge’s assets to be produced profitably, (if not bought out first.)
Chris, I agree completely. SA would probably be a good one to drop a few bucks into and hold for the longterm.
They do have a monster P&P resource. Thanks for your comments.
V
Chris, are you more focused on oil or natural gas? Maybe you have some good picks there that we should check out on your newsletter. I am certain nat-gas is about to take off (as early as tomorrow) and have been talking about this for weeks. Comments appreciated.
Don’t worry ! The manipulators put the markets ! And base metals are UP NICE TODAY ! The lairs never stop DOW CAN GO 21000 !!!!!!!!!
We will see crazy think’s in the WORLD CHRIS ! GOLD is the only save plays !!!!!!!!!!
I have a few picks I like in my newsletter, yes. Will be adding more shortly, too. As I have said on the show several times, many “old energy” companies as I like to call them are dirt cheap, while the hyper-leveraged fad fracking plays have mostly been selling at nosebleed levels.
In relative terms, I think nat gas is the better of the two based on fundamentals in the industry (or lack thereof, where the economics to produce are concerned.)
And I continue to believe nuclear energy will rise like the proverbial phoenix again before much longer as well.
REALY NUCLEAR ! DON’T ! https://www.youtube.com/watch?v=i0HNTgFRXNM temple DON’T !!!!!!!!!!!!!!
I appreciate how you are directing your energy Chris. Fact is that we are seeing a bottoming process in a great many commodities that is coming in conjunction with a top in equities. Gold remains hated by the powers that be as it represents a real threat to the success of the various QE initiatives. My instincts tell me therefore that the real upside opportunities will lie elsewhere (no matter how much the bugs cry and wring their hands in anguish) and that area is going to be energy. History rhymes but does not repeat. While the conclusion of the last great credit bust saw gold equities perform spectacularly I harbour doubts the same will happen this time around. At least not to the extent those trades succeeded in the 1930’s. It is because of most governments (and I mean all of them) worries over what a high gold price means that I think it cannot get the support needed to fly as it did in that last epic bust. Energy is where the big gains will be made instead and that should include everything from drilling to pipelines to oilfields themselves. In other words, oil and natural gas are going to be the proxies for gold and thus the area we should select for both capital growth and dividends. We don’t call that stuff black gold for nothing!
Like I’ve said a time or three, the streets in Heaven may be paved with gold, but here on earth we use asphalt.
I was bang on the money that natural gas would finally take off today. Called it perfectly.
I think you’ve got it, ‘Bird. GASL ( the 3x ETF nosebleed special ) is waaaaaaaaaaay oversold. The real excitement in natgas will be when “everyone” suddenly realises there’s not as much as the propaganda wants people to believe.
Thanks MAD….up 1.7% so far today and much more to come. Wheeee!
BB,
Most mining companies that don’t produce a profit, thus no earnings use their shareholders as funding source.
These companies for the most part are just like the FED, they are “counterfit share operators” that serially dilute current shareholders to maintain and secure future operating expenses for exploration and lavish executive compensation packages.
When these serially non-profitable companies in the mining sector dilute to the extreme where the stock basically never moves and never make the common shareholder any return on investment, what do they do.
Well they initiate the tried and true shareholder destroying stock “reverse-split”. They do this over and over and over. Rinse….repeat…..rinse…….repeat. Not all, but many.
Who gets richer in this transaction, the company executives and the banks. Who gets screwed, you guessed it, the retail common shareholders.
Interestingly enough, the company you mentioned “Seabridge”, is one of the few explorers that has done a fabulous fiduciary job and not exploited shareholders. They are the exception with only about 44 Million shares outstanding, maybe 50M + fully diluted.
Most moose pasture/explorer mining company executives aren’t qualified to run a lemonade stand.
How about good old Silverado, the very first company many years back to get into the BILLIONS for share count!
Yes Sir, thats an old name for sure.
I have to agree with you Vortex, Seabridge might be worth looking at for anyone interested in a gold company.
Mr Oleary agrees with your last statement, he wont touch a goldshare for that reason, but believes in keeping 5% of his portfolio in physical gold.
O’Leary used to scrape bubble gum from the floor of an ice cream parlor, the world for some is an oyster.
We all had interesting jobs as kids Dick. I started selling greeting cards door to door when I was eight years old and was making more money than my father for a time. How damned crazy is that? Summer job only. Paid for all the stuff I needed and set me up with a fat little bank account my young friends could envy. Maybe those grannies just thought I was cute. On the other hand…some of them were giving me money just so I would get lost!
Damn, Birdman — I did that very same thing! The greeting card catalog to sell from and the whole deal.
Sweet gig. All it took was the energy to hoof around town knocking on doors and the discipline to stay out of the ballpark where the rest of the kids were learning that all play and no work was the true secret to success. Not!
I used to go door-to-door warning people about the door-to-door salesmen that were approaching.
And thereeeeeeeeeeeeeeee…………….. goes $20 silver.
Who was it that was saying the other day silver needed to catch up to golds declines? They got that right. We were waiting for this and so it has arrived. I only mention this because I have already seen comments wondering why gold is up but silver is down today. In the prior week it was the same damned question so it should not take a whole lot of mental processing to appreciate they are still moving together but doing so in a less than synchronized way.
Seabridge just passed an environmental hurdle.
Stock shot up on the news then profit taking happened.
Im starting to think it odd that people continue to invest in companies that lose money,
should gold move up these should pay off I guess, but how long can they survive loosing money? A lot will lose even more money should gold price drop further.
I just find it odd, companies like amazon or bp etc,share prices seem to depend on earnings and profit, they will go broke when earnings don’t cover expenses but not gold companies, just odd.