Re: I just about had it watching this stock
posted on
May 23, 2008 09:03AM
Rob, If I had to pick between one or the other, the choice would be Kimber, hands down. Ultimately, I am a value investor. That's what brought me to the gold sector. 18 months ago I didn't know what a gold junior was. But I've done a lot of research since then. I grew up in Silicon Valley and made most of my money in Intel, Cisco, Apple and Pixar. There is no value for the price in any of these companies today. Actually, there is value still in Pixar, but it's locked up inside of Disney which represents little if any value for the price right now. Remember, price figures in as a very important component here. Companies always have some value, but the question is how much you have to pay for it. Think of it this way. If someone offered you $100,000 for your car you'd probably hand him the keys right then and there. If someone offered you $50 for your car. You would laugh. It's the same car. The underlying value is the same. The price paid is what is important. I love Apple Computer. But I sold all mine at $120. Now it's at $170 or so. That price is too high. Other people believe differently than I do or else the price would never have gone above 120, but I think they are incorrect in their assumptions. And at this point I don't care because I bought when Apple was at $7. In any event, in light of the continuing bull market in gold, the location of Kimber's resources, the upcoming favorable drill results and the intelligent backing of the company, there is tremendous value there that most people don't recognize yet. This is how one gets rich. Or to quote the Conferderate General Nathan Bedford Forrest, "Get there the firstest with the mostest." Buy something cheap that sooner or later the rest of society will view as valuable. I have a substantial position in Kimber. If I don't like to publish my exact numbers, but if you were to guess half a million shares for my personal holdings, you wouldn't be far off. My investment group has 4 times the amount I have, so we are not just messing around here. Also, I held Pixar for 9 years without selling a single share before I sold out for a ten bagger, so I have no plans of selling KBX anytime soon. Read my next post. Bull