bottom line
posted on
Feb 28, 2011 06:11AM
Keep in mind, the opinions on this site are for the most part speculation and are not necessarily the opinions of the company WITHOUT PREJUDICE
So, we looked at some of the risks. It was interesting that the risks mentioned are risks associated with almost any stock. So, we have a choice, invest in SLI with these risks, OR invest into another stock with the same risks. I guess it boils down to pretty well the same risk, no matter what stock you are in. This is where the risk/reward factor kicks in, with all things the same on the risk side, the size of the reward will be contemplated to make the final investment decision.
So, for me, once again we just made a big circle and are right back with SLI looking like a worthy investment. The one thing I would have to say, and I know must of us here think this, is that the reward may be one of the biggest ever. Its pretty hard not to buy SLI under the current risk/reward ratio.
The most immediate risk is the permit, but if everyone waits until that risk is eliminated, they become part of a buying stampede and pay far more than todays sp. So, it is a gamble, buy now and maybe enjoy a huge sp increase on the permit announcement, or wait, and buy on the day when the big boys are buying. Keep in mind that if we get the permit, and that nr comes when the market is closed, we are undoubtedly gonna open at a much higher price erasing the chance to get in quick at a stable price. As has been said before, the big buyers are probably waiting for that permit,their homework is done and they are probably just sitting there, waiting for that risk factor to be eliminated, then bamm! Add on top of that, the other more cautious investors also sitting on the sidelines, they will undoubtedly have to get some also. Add in the fact, that most/ if not all of the longs, are not selling a share. That leaves less shares available and then the supply and demand factor kicks in which will dictate the sp up to what price?
If we receive the permit, how will the funds interpret our deposit data? Will they consider the 2 underground workings as 2 drill holes? Will they do what a few of us here have and connect the dots, and arrive at the same conclusion? Will they think this has the possibility of being the biggest gold strike ever? Will they remember the Aurealian and Arequipa saga,s? Will they wait until the first assays come back ? If one fund starts buying heavy, will this trigger a stampede, putting the sp in a domino effect upward that will hit the $5 mark allowing all the funds to buy?
What will they do?