In the course of my relentless personal DD regarding the selection criteria for junior gold mining stocks over the years, I've come across the following insight:
AVOID stocks that have the following characteristics:
- Management loaded up on stock options with little or no personal investment
- A BOD comprised of management cronies
- Financing thru dilutive stock issuance resulting in hundreds of millions of shares outstanding
- 'Incestuous' relationships between management and highly remunerated crony consultants
Junior gold mining stocks that have the aforementioned characteristics generally are run for the benefit of management with little regard for shareholder value.
