http://thefundamentalview.blogspot.com/

THURSDAY, NOVEMBER 3, 2011

Kaminak Gold Corp - Accumulate

AS you know I had previously written about some junior mining stocks that I liked. I used to carry banners on this site for them but this gave readers the false impression that I was receiving advertising revenue for these companies or perhaps being paid to provide promotional write-ups. This is the reason you won't see banners for these companies on my site again unless of course individual companies want to pay for advertising space. (I’ll never say no to ad revenue)

With that aside, I am can tell my readers that I am aggressively accumulating KAMINAK GOLD CORP (Ticker KAM on the Canadian Venture Exchange.

As I have written about in the past, Kaminak is considered to be the “lead dog” in the Yukon Gold discoveries of the last 2 years and is leading the new Yukon gold rush. You might ask why I am aggressively accumulating this company now? Because we are in the off-season in the Yukon where drilling has now come to an end for the season, not to resume again until after the thaw in the spring.

As I might have mentioned in the past, the time to accumulate these stocks is when they go relatively silent, not when activity has heated up. However, Kaminak has another angle to it that is most intriguing and that is that notwithstanding the fact that their drilling has finished for the year, Kaminak has 100 drill holes to report from between now until the end of the year so we will continue to receive news-flow from the company even though they aren’t drilling.

The stock is off sharply from the July high of $4.60 which is why this set-back in the share price (which has nothing to do with the fundamentals of the company but rather general market sentiment and the gold price drop instead) provides for a good time to get into this stock if you haven't already and also provides an opportunity to add to your positions if you so wish. I believe that this stock is a genuine takeover candidate and although I won’t say for certain that it will be taken out, just look at history and look at juniors that do come up with significant discoveries. Most of them at some time or the other end up being taken out. I should caution you that these statements should not be misinterpreted to imply that I am suggesting I heard anything. There are no such rumours floating around…I am just making a general observation/statement.

Kaminak is one of those that you can safely buy and look back on in a couple months to see that your investment has made you money and perhaps, more money than you thought. I am anticipating a new high in the stock by the end of the reporting phase of the 100 holes coming. I really do believe that the potential for price moving action is very real with this stock and wanted to give my readers a head's up if they want something to tuck away in their portfolio for the time being.

Go back to my original posts regarding Kaminak that you can find the link to on the right hand side for more information. I am also waiting on permission to reproduce a copyright protected document and thorough analysis of Kaminak and will post that for you all once/if permission is approved.

As I write this, KAM is trading between $3.16 – $3.18 CDN and I am buying and will buy up to $4.00 adding to my core position on all dips.

Disclosure: I am long Kaminak Gold from $$3.70 and am continuing to accumulate. I have not been paid by the company or anyone affiliated with it to write this and am only doing so in my continued effort to open dialogue about trading ideas with my readers. Please do your own due diligence and speak to your own brokers/financial advisors. Read my full disclaimer.