Comments on the junior sector including companies
Chris Temple is with us this morning on a slow day in the markets. We start off covering the Boston Fed President Eric Rosengren’s comments this morning which were more hawkish than expected. After those comments we dive into the junior sector commenting the broad market and investors paying more attention but then we focus on a couple companies that have preformed very well over this year.
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Chris:
I believe this journalist has a different view on the general markets than you. Perhaps you have seen this but it’s nice to know, the good times are a comin’! http://www.marketwatch.com/story/4-reasons-the-dow-is-headed-toward-20000-by-the-end-of-the-year-2016-04-04
one example of ….Tesla…..sales of 100,000 in a market of 17million units ? Is that a big deal?
btw….thanks for the post…..
( High end ) Snoops Business people buy the Tesla cars ! In EUROLAND the green Boys !!! Day never Buy Gold !
There are some who believe we’ll see a return of the bull market thanks to the Fed’s newfound (?) dovishness — long-term, I don’t think this guy is all wet. But he seems to take too simplistic a view. And certainly doesn’t seem to understand that debt levels now will limit economic growth/gains. So, 20K for the Dow THIS year is a stretch.
Thank U ! AL Cory Chris ! When the grading in the hill is the same ore high ( The price will go BIG AND INSANE !!!!!! BUY BUY BUY !
Money freaks ! https://www.youtube.com/watch?v=PlwogUNe_JU
Claude’s market cap went from around C$20M to C$253M in about two years. Risk peaked just before they sold the great Madsen project to Pure Gold Mining. At the time, I was disappointed that the shares of that company were so expensive so I essentially forgot about it.
Fast-forward two years to the big gold sector turnaround of Q1 2016 and I found myself looking everywhere for something else to buy that would quickly join the party and I was very happy to find that PGM had not only come down to an attractive level, but that the chart looked like it was ready to go. So I bought all I could from .11 to .14 and didn’t have to wait long for it to reach .29 (Glennfidish can attest to this). It has now consolidated the gain for the past month and has refused to give up the 100 week MA.
The reason I bring this up is that I think we have the real potential for the next Claude here and it has now probably sufficiently consolidated its quick initial move up. I was hoping it would go a little lower but today’s drill results changed that for now. Many more drill results are pending and the company has great management and some interesting strategic shareholders. (I didn’t have to go beyond their homepage to know that it is a Mark O’Dea company.)
The market cap is just $30M. If you decide you like it but think gold is coming down, you might get a much better price than looks likely at the moment.
I own it. As always, do your own due diligence.
I’ll take another look and remember when Claude sold Madsen that I was a bit disappointed. It is also interesting the Rob McEwen owns a big chunck as well as Sabina Gold & Silver.
I have Rubicon in the back of my mind here, too — what a disaster. Glad I got folks out of that one LONG ago while there was something good/profits left to get!
Yes, I thought of Rubicon too! Luckily, I never did own it.
Yes, I never fell for the Rubicon story because of some comments that Brent Cook had made a few times in 2013 and 2014 where he repeated several times he thought it was a marketing story, that they didn’t understand the geology there well enough, and he doubted it would be economic in the end.
it is all in the name………RUBI “CON”
Good one OOTB…CCF!
THanks for the post…………….J
Thanks Matthew !
Having visited Madsen a couple times, I was chagrined when Claude had to sell it. Lots of upside there, quite possibly. Claude actually fired up the mill for a while and ran it, but soon realized that it had jumped the gun and would be better off dewatering the old shaft/drilling (a big project, as it turned out) and building up more reserves first. One caveat: One of the smartest mining analysts I ever met was a bit underwhelmed by some of the geology; he, I and some others visited Madsen at one point when former Placer Dome was doing some exploration there in a J.V. with Claude. Perhaps there was a reason they (Placer) didn’t carry forward.
That said, thanks for putting Pure Gold back in front of me, Matthew – I’ll be taking a fresh look.
Thanks for sharing that, Chris. I didn’t like the sale of Madsen either and thought the price was low. Of course, Claude did not appear to be in any shape to drive a hard bargain at that time.
Your caveat is appreciated. The coming drill results might be more important than I thought. Hopefully your expert’s concerns have already been mitigated by later drill programs and/or new technology.
Either way, I have to admit that I am likely to give O’Dea and company the benefit of the doubt since he handed me a big win with Fronteer Development and a very worthwhile 100%+ with True Gold Mining.
The PEA is expected to be completed this quarter.
Stagflation, here we come…
California Gov. Jerry Brown signed a bill Monday that intends to provide the Golden State with the richest minimum wage.
Yellen needs to put a short leash on her Fed deadheads.
WASTE OF TIME………..the FED is now the JOKE………..