I do not post here much lately because I have thought that KXL was in value territory since it traded near $2. So what is there left to say when KXL is below a buck? The market is acting under extreme short term irrationality right now. It can go on for months, but in the real picture that is still short term. Outside influences that have nothing to do with KXL or its prospects are driving the story right now. I happen to think we are close to the reversal, but I thought that in September, and here we are.

Just for the record, I have not sold any KXL. I would like to be a buyer but I am not able to do so, and really just about everything is on sale now anyway. But my thoughts are that a lot of money was pushed to the sidelines, that is just waiting for a defined bottom before rolling back in. You also had very negative sentiment for the entire commodity sector, that discouraged buyers from stepping in, and probably led to shorting. So very little support in the market was on hand at the exact time of heavy selling presure. It should be no surprise that KXL is down at this level, along with so many other quality juniors.

During the summer I was posting that I liked KXL because it has such high discovery potential, yet it is not going to be affected by the funding crunch facing most other juniors. That has not changed, yet KXL is down to the same extent of the peer group. I know the management of this company very well, and expect that the biz plan remains intact, and the cash in the treasury is going to be effectively managed. That provides a measure of safety and it is one of the reasons I was content to keep KXL during the crunch.

I have nothing new to add that I have not posted at some other time. I think KXL is a good stock to hold for several years, and we should know that there are going to be ups and downs along the way. The steep selloff has changed nothing. At the end of the day, it is a big new gold resource that will determine if KXL is worth the upside that had been bid into the shares earlier in the cycle. I have seen my PF value drop from above a million dollars to below $100K, and those two digits that are gone from my net worth have hurt more than I can say. But I am still hanging around and still expect that the juniors able to survive the crisis will recover to new highs. That is my personal opinion and my money is staying on the line.

When the bottom is at hand, despite all the pain of 2008 for resource investors, I think we can look forward to a wild recovery in 2009.

cheers!

mike