Just skimming over the KWG and SPQ boards this evening and I have noticed that some folks have been selling their SPQ shares to leap onto KWG. And a few others just dropping SPQ to take profits.

As I have repeatedly mentioned before, these two companies may look like twins but they are very different business models dealing with a common resource. I own both and expect to make a lot of money from both - but these profits will come at different points and for different reasons. And I think it is a fallacy to assume that they two stocks will continue to make parallel trade movements in the same pattern for much longer.

This is my opinion only but I would be very wary of getting out of SPQ at this point. There is an impeding decoupling of KWG and SPQ share prices as a result of the differing business plans. And I believe it will be SPQ that will provide the initial and most dramatic upward movement. And this may happen in the near future.

SPQ represents an open back door into the Big Daddy stake that CLIFFs does not control. And I believe that this will not stand. A take over or buy out of the SPQ ROF holdings is likely to happen, and CLIFFs must make every effort to ensure that they are ones to do it. If not, their future planes could become very complex (and costly) if another major muscles into the picture. As a result, I believe SPQ is a high impact / near term "ten bagger" investment with a short shelf life in Big Daddy.

KWG is not an investment like SPQ. When the initial euphoria of the upcoming 43-101 wears off, KWG becomes a long infrastructure story that will pay off with each passing year as railroads and ROF mining operations begin to come into place. And all the while, it will be collared and walked by a chrome leash held by CLIFFs.

This is what I always believed and this is how I have positioned my investment in the ROF game.