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Message: Paul - stock advice - great post
1
Feb 29, 2008 01:08PM

Feb 29, 2008 05:12PM

Feb 29, 2008 10:35PM

I read the lot of your links, with much interest, and was happy to recommend your post.

Most of it applies to crappy juniors, which are largely a means to make up some paper to trade up and then dump. From monitoring the KXL geology and results, I figure we actually likely have something here, so I intend to ignore the short term.

Not that the big traders won't make a lot of hay on it on the way up, down, up!!

My favourites from the list you linked to of "The Dirty Rotten Secrets of the Small Cap Market":

11. SECRET OF THE AREA PLAY. Virtually all area plays fail. (KXL has locked up the bullseye of good geology)

15. AXIOM OF MOTION. - ... Thus, if a stock doesn't move, they panic. (bad market action or no drill results deflate our stock).

50. THE ULTIMATE RULE. Paper is paper and cash is cash. The only reason you are holding paper instead of cash is you
honestly believe your paper will eventually be worth more than the cash.

(actually, other than commodities like gold, or real estate, it's all just paper, as the US dollar is proving. No country in history, ever, has sustained a 6% current account deficit, and they're at 7%. It is NOT "different this time").

.......

It all reminds me of a classic banking expression (which, no surprise, you can not find via Google, any more than you can find via Google Einstein's thoughts on the Arabs and Jews, which were shockingly reasonable and intelligent):

"The big bankers LOVE crises, because they return assets to their natural owners"

(i.e. back to the the rich).

Never forget - the big players love crises, discouragement, and price action that seems to make no sense. It's all grist for their mill.

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