I feel a lot of pessimism around. Yes, last year was brutal for KXL and many others. To start 2008, KXL was my second most valued stock in terms of absolute value, and at the end it was maybe number 8 or so.

What I realise now is that 2008 overall was not that bad after all. My major gold stock rallied, and even one of the juniors I bought in Dec 2008 has more than doubbled since. There has been lots and lots and lots of opportunities to make money.

I lost a lot on KXL because I fell in love(bad thing) since you get drugged. In the fall I sold about 1/3 of my KXL for tax purposes, and do you know what, it actually changed my pessimism to optimism. I suddenly can reduce my taxes significantly and it sort of gave me a new start.

Gold stocks will continue to rally not necessarily only because of the high gold prices, but more so because operating costs are dropping, and will continue.

When will KXL rally, I don't know and from an overall investment point of view it is not so important any longer since it is such a small part of the whole thing. As I said after I sold 1/3 in the fall, I don't think too much about my purchasing price and longer. Instead I look at it from here(0.80) my selling price.

Long term I think Kodiak still will be good but it will take at least 2 years or a lucky strike. In the shorter term projects near completion will do much better and also the major producers.