Re: A fairy tale in response of the various rumours.
in response to
by
posted on
Feb 14, 2008 02:56AM
Discuss the various junior resource companies within the McFaulds Lake Area
No question but it's impressive and what is most important is what it has done for the share prices of all the players.
What is most difficult is to guage exactly what entry and exit points are appropriate for all these stocks. 'AT THIS TIME' . It's even harder for those going long for 3 months or more.
Have they run farther than results warrant.
Will the deposits identified prove out to be economical.
Market trend in General and US Economy and effect on juniors.
Time line for proving out any deposits found or indicated. Movement of share price during this time frame.
It's likely given what has gone before to expect a number of excitng new finds in the James Bay Lowlands and corresponding share price movement. A savy investor also knows there will be disappointments and market turmoil along the way. Balancing risk/reward is important because this changes over time with movement of share price.
For example what is a great purchase at $2.50 might be more risky at $6.00 since more is expected of that $6 share and punishment for failing to meet those expectations can result in steep share price decline. Depends if your playing the speculative interest dollar or bedrock intrinsic value of the stock. For junior exploration companies it's very difficult to put a bedrock value on them since very few are at the stage of proving economical value of deposits found. Of course that's why junior exploration shares are low enough priced, or should be, to hand the investor a big payoff for taking on risk.