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Great piece hillzman. This was a very smart deal for DEJ. They have to start developing these projects . Companies developing along the lines of "Project Generators" are usually criticized for missing the big score but DEJ is setting itself up to stay very much involved while losing most of the financial responsibility. Maybe a similar deal on Kokopelli will come. If so.I'd like to see some deep shale exploration in Woodrush(with a partner) and likewise on both Rangely properties. All one has to do is compare and if you throw away the charts and look at the assets and the permits,one begins to understand how easily this stock could turn into a buc and beyond.
I don't believe anybody ,including the company has accurate information on what DEJ will take in on this deal (at least the cash part of it ) because it is based on performance of wells, that do not exist yet,imo
I'm sure there is a base price but essentially this is a deal where more recognition of the companies acreage will be realized.It's obvious that what myself and a few others , believed and spoken about is true. The company has too many assets that need money thrown at them. They have no choice but to start making deals. Not really a bad place to be ,all things considered. DEJOUR could become a Oil&Gas project Generator. We will see.
The focus seems to be pointed at the Rangely properties and Kokopelli,both U.S. ,although the black sheep which seems to be their Canadian producer,Woodrush, also has some deep shale oil potential that could ,with 10 million in cash be a huge producer.
Anyones guess where the companies financial focus will lead them to,in 2013 but I have confidence that Hodgekinson knows exactly what he's doing (proven track record and skin in the game ).I sincerely believe he has the shareholders best interests at heart and 2013 will finally be when the company becomes priced around it's value. We need futures on dry gas and the price of NGL's to stay where they are or improve and everything will be possible.
Trying to understand the markets logic in US Silver and gold being under 4/share, I started doing some comparisons on some smaller silver and gold developers/producers.
I challenge anyone to find a better value,than USGIF in direct competitors or even these smaller companies where growth must be anticipated as part of their current value.
I researched Huldra and Avino . Huldra has about 10 million less shares than us FD. Avino about half. The reserve/resources and production if any are laughable. They are good projects in my view but if you do your own DD ,you should find that any exploration upside is a shadow of what we already have and there simply is no comparison in production. Avino ,finally does have something of merit above USGIF,(that elusive AMEX listing) or MKT.
Our share price is a product of our own destructiveness. I believe ,the dust has settled and the value of this company which I have tried to prove versus so many others, is ready to be noticed. I'd surely like to know the hesitation of the fund managers that invest in silver producers.
Bill Barrett, Encana, WPX or Williams. Got to be one of them.
5000 of 12000 acres at Roan Creek still have 100% interest,so even after the farm out DEJ still controls more land at Roan Creek than the entire Kokopelli property. Also, if this large gas producer does well in the farm out ,it makes the lands around it (those 5000 acres,more valuable) The logistics of the deal make sense .My guess would be ,it is the request of the earn in company, to stall the cash amount being publicly disclosed. (common practice). Failure can result in market sentiment against their stock price with success of course being fully reported.Shareholders from a major are unlikely to question the entire deal if it's simply reported in the quarterly as a small part of E&D.
Share price rarely represents value. Even book value is off because assets in many cases are given only the value of undeveloped claims unless that particular claim has reserves. IE; LZ would be valued by the book at very little yet the possibility of literally billions in silver exists. 200M oz's X 10.00 = 2B
You have no way of proving that. Completely untrue.
No they could not have this company for 3/share. They offered us 1.80 when we had 1/3rd more shares and I remember you saying you would except 3 /share so...
Everything to do with increasing the value of the assets that could have been successful ,WAS , The exploration ongoing at the time of the merger,was successful. Don't you think HL had bought some shares while obviously being interested in USSIF? Don't you think ,since they now realize the USA assets will cost more ,they would be trying to make the PPS suffer as much as possible ? ,while insiders help their price .HL knows they screwed up and they know they cannot afford our shares if another offer were made ,so they sell on a hope , trying to make investors in USGIF believe that price is the same as value.
Try and reason how HL should, at 5X the share structure of USGIF be more valuable. I cannot see your reasoning.
That's not off topic at all. Just another proof that makes Hecla management look like they are pennywise/dollar foolish.
They could have had USGIF , including an asset better than Lucky Friday for 200 million dollars .They are investing more than that in Lucky which is not operating at all and for the first year will produce less silver comparatively to Galena. As a matter of fact,the LF mine will get up to 3 million oz and Galena could almost reach that without the LZ ,just by getting the Couer online. Just by a small inexpensive addition of LZ ,the Galena can match LF and surpass easily with more resources as the LZ is put into full operation.
MSHA checks and passes safety inspections on Galena regularly and it is not as deep and has another larger shaft already built ,ready for a rehab.A better mine ,no doubt.
This company has no financial problems at all.The last quarter ran at a profit other than expenses still occurring from that damn merger.
The huge difference is that the LZ is one of the premier greenfield or brownfield deposits in North america. It very likely IS the best one because of the Capex and the fact that on a small scale it's already being accessed.
I was a huge fan of Parker and had we never gone the route of share consolidation/merger ,I think we would be better off today. I exclaimed this for months.
When most of the people like yourself(no offense intended),sensationalized the future with the emphasis on big deals and the Amex ,I tried to make investors realize that the slower methodical increase in silver oz's ,thereby building the company by mining fundamentals not paper promises,was the way to 2 dollars and beyond. Earn the Amex through profits .Consolidate shares when the base was ready for a dividend.
Anyway,the company took a new route and I stuck with them because of the fundamental mining capabilities of what is now known as the Galena Complex. We now have identifiable evidence that strongly suggests the best brownfield projects in North America at a fraction of competitors capex and very likely ,with some mechanical help better cash costs than most peers,for underground mining.
More likely USGIf will be making offers,imo
I don't see the value in USGIF like I did when I first started following USSIF 2 1/2 years ago
Explain why . Other than the price of silver and investor sentiment in silver,the fundamentals of this companies assets have NEVER been better.
Dilution is necessary when junior companies come across assets worth multiples more than their market cap. How else to exploit the potential. The company has turned properties in Colorado with environmental obstacles into fully permitted exploration plays with enormous reserves of both dry gas and NGL's,unfortunately the spot prices of both have declined making a temporary condition not economical .Many larger companies have lost hundreds of millions using up liquids to offset losses on dry gas and in that effort have changed the demand fundamentals of NGL's.
I don't know why I bother explaining fundamentals to a daytrader. Please by all means trade away. Retail , uneducated traders are why this price is lower than 40 cents .The rest is due to demand fundamentals.
WRONG , fundamentals are excellent but dependent on a rise in NGL's and dry gas. Obvious your a trader and more obvious your wrong most of the time. If you can't understand simple fundamentals like demand ,stick to trading .
A quick comparison of Rock Creek to the new part of Galena. Rock Creek has between 200-300 million oz' where LZ has only 150-200 oz so far.
Rock Creek will need to extract approx. 137 million tons @ 1.67 oz's per ton. (inferred)
Galena LZ is 60-70 million tons @ 3-4 oz's per ton.(half the tonnage with twice the silver)
We can already access the LZ through our other shafts for more moderate extraction.
The fact that Rock Creek has about 1/3rd more resource is small comfort when the grade is so much less. With a slow construction of LZ USGIF can mine LZ even now while Revett is fighting to get just a pilot mine going.
The value with these 2 competitors is widening.I think when a scoping study is complete on the LZ ,investors will be trading their RVM stock for USGIF stock. Grade is always KING with permits and functionality through infrastructure resulting in lower CAPEX , a close second. How much of a great resource can actually be extracted ?
I once believed in a merger of these 2 projects but today I see Galena as simply a much more valuable entity on it's own ,than any other silver producer/developing asset in U.S./Canada
In fact, the opposite IS often true... as "more" value in the known assets frequently justifies "more" in takings...
Exactly why they go to any means to acquire shares. They know the value of the assets and the longer they have to accumulate shares ,the better for them. It isn't important to them when shareholders benefit from the value. It also isn't important to them if shareholders give up. The only times management wants the share price up is when it is beneficial to themselves or to the plan ,which ultimately is the same benefit
This is a fairly routine and lousy way most mining companies operate. The Venture miners (Jr's) are the worst but it's all got to change. USGIF is pretty normal.
I've found DSU on other boards ,an interesting conversationalist, but I agree that sometimes he makes his motives very obvious. He likely sold all or some and see's the value but wants the price as low as possible,so he points valid criticism out and molds it into his story of the company and his adjusted forecast. That's my take on him,despite what he says.
I really don't mind criticism of this company when it is deserved or even when it looks like it could be deserved but marginalizing the incredible value of the LZ is going overboard. Everyone ,including Hecla knows this is a company maker. The question is ,What company ?
Despite my disappointments and my continued short term negative opinion about PM's ,I think my investments in SSRI and USGIF are in 2 of the most undervalued mining companies in the World and the net asset value of both companies mines and potential resources are being valued at below wholesale price (fire sale). This will likely continue until as you suggest ,silver begins a new ascension
Incidentally,you don't have to type my alias in capitals. That was my mistake from day 1 and I wish I could correct it ,but would have to add a letter or change one.
Your taking apparent problems with management and being completely comfortable concluding that there is a problem when it is partially conjecture. Nothing at all negative should be implied about the LZ and it's exploration progress.
You said,
But, the reporting rules do appear to require taking a more conservative approach than they are..
Why ? They reported exactly what they should report. There is a lot of evidence that is historical ,that cannot be used to more clearly define what a game changer this is. (CDE was very aware of the potential ).. This area makes GALENA assets a valuable commodity despite our complaints about management that 1. Do exist (options) 2. could exist (unknown financing) I think shareholders MUST keep on top of things here ,no doubt. We must use our power to influence as much as possible.
I have no problem discussing ,even in a negative way things about a company I'm invested in but lets not take away something good that has happened in the last year. The LZ is an incredible resource with a scoping study coming "Quickly" .
Not only is it a huge resource,it is likely the best large resource in the Silver Valley and Montana near by that CAN potentially be reserves. Blasutti has done nothing wrong reporting the exploration and the potential development of NEAR TERM extraction.. He has told us that we need help with the silver price(any lower grade mine does) but... other than that ,the LZ is a focus ,as it should be .The lack of clarity is understandable until the scoping study is public.
This does not excuse our loss of equity since all this consolidation -merger-another consolidation - options , Happened! What it does is say to investors is, that a lot of entities in various forms are ready and willing to get their hands on US Silvers LZ area.That is what Baker and Hecla claimed they wanted after they screwed up the acquisition.
They knew the potential for a resource was far greater than anything Lucky Friday had. They screwed up big time. A couple months after the HL failure to acquire USSIF,they learn of the massive potential that has begun to be dissected. I'll bet they've been selling the shares they built up prior to the buy out, to play down the LZ. I would not be surprised to learn that our price devaluation has more to do with Hecla's failure to buy us than our own companies short falls.
I'm guessing at what they're likely going to do .I have no idea .I thought we were going for debt financing but that ended when Blasutti mentioned the private word. Generally banks are not considered private financing,Right !
The only financing this company should ever need is to fund the LZ and given the price of silver at above 40 with a good indication of going higher ,I would think a miner like USGIF should be a good candidate for prime plus 1.
Silver goes up ,revenues go up,market cap follows ,then debt financing for 200 million and blow away the competition on permitted oz',production,much lower cash costs ( partially mechanical implementation) and safe jurisdiction. That's my formula !
another point is, if they asking for private money, why
not remarking this today, knowing that the entrance in
this money flow will be high.
Fenchel, That's a point I want to make clear. If the idea of management is to boldly borrow through private lenders at under 4 dollars per share ,I would as much as all others here hopefully strongly oppose such an action. I appreciate a management that wants to unlock the value IE;LZ via bulk,possibly,partially by mechanical means That's great but we need a confirmation on silver rise and we really do not need money at this point .We cannot expand at 2 bucs a share through equity financing ,Forget that. We (the common shareholders) just payed dearly to be a low share structure silver producer,we don't need to go back to 300m shares.
Blasutti is probably looking at convertible notes which can be written at about 3% interest to qualified investors with a deal that some of their funding can be traded or "converted to shares" The key to the deal is at what price .NOT 2 BUCS,no way
There are deals like this that a company is NOt obliged to convert shares.The only way the lender can get his hands on shares is if WE CANNOT PAY and that can happen if silver goes down drastically but it's better than bankruptcy. It's really all in what kind of deal he (our CEO) can make.
I see no reason for any financing near term. They have proven by last Q3 that without the expenses from the "damn merger" we would have been profitable. Shareholders must stay aware.
Until management prove a meaningful connection exists between ownership of a share... and the assets... the assets don't matter.
Management seems to be doing everything they can to discount a meaningful connection existing between ownership a share and the assets. That much I agree on. However that does not mean the assets don't matter,they do. That's why there is interest in taking our value via both Directors/Management and Insiders such as Sprott.. The assets are the key to their greed therefore a logic exists that says we should own those assets and protect them by the power of the vote.
Retail can still squash these insiders if retail bands together. Sprott and our Management own under 20%,to my knowledge. The idiots who voted for the merger will not be so quick to lose more equity again.
Blasutti will not not dilute in a traditional sense..He is carefully crafting private equity to lend,with agreements so as to greater the amount of equity in shares, they control . (they control more if the stock price go up) , I agree that's what they are trying to do, but they cannot succeed with strong shareholder disapproval. They will lose institutional investment. Not all institutions interested in these assets including Hecla are on the side of this management or Sprott. We have allies albeit temporary.
At these levels even those options I so strongly disagree with cannot assist their effort to gain more of this company. We still have the vote .The bigger money grab for private equity will likely pass over another SHM so if shareholders begin the effort to hold our legitimate value ,we might just be able to benefit by those assets yet,especially if silver goes up. I'm sure it's happened before.
Shareholders revolt against their own management and open the door to a takeover.
For the bigger shareholders it's time to band together and influence the decisions.
The assets of USGIF will be realized by the market. Always happens... not necessarily good for us . The assets could be bought ,merged or financed but the value of those assets WILL be realized.
Compare silver miners.Your not doing the DD there,that's for sure.That's how one can access net asset value of the properties and their assets including permits,infrastructure and metal . Whether 100% or 50% of your holdings will be part of recognizing value here is entirely up to you. How you play it.
I stated that retail shareholders that want to stick around should become more proactive with demand through outlets like IHUB to eventually vote to banish certain directors .This is the message and a powerful tool.Maybe the only tool or sell and move on.
" How much of the lousy stock price is due to the lousy performance of USA management, and how much is due to the out of favor performance of the entire PM stock market?"
To answer that question you have to compare silver companies (peers). I believe that some decent performance from a few like Hecla has been a orchestrated rise via insiders. No way should HL be valued higher comparatively to US Silver. Insiders responsible for HL's apparent decent standing are likely the same investors responsible for USGIF's dismal performance. Our management has just made the job easier.
All you can do is realize that the net asset value of the property and infrastructure will eventually be realized by the market. Always happens so long as the assets are real . They are . I fathom a lot of manipulation going on to keep this price low. The Why's are imo,good for us ,albeit annoying. Blasutti is doing exactly what he should be doing.He is going to give the market (more correctly probably suitors) a scoping study on our ace in the hole ,"LZ ",due in the Q1.
A viable resource who's likelihood of being reserves is excellent in a safe jurisdiction with permits and infrastructure largely in place with a smallish share structure and a solid workforce for 113 M market cap.???????????????????????????????????????
Investors are not jumping on this because without a positive sign of our principal metal,there is no reason to,YET.
Part of the problematic share price IS due market conditions of the silver sector. You really cannot disagree with that. SSRI ,which I hold, can't even stay above 50% of it's highs. .
I agree that management IS partially the cause of the share price,no doubt,but... the longs here have had their value stolen by 1/3rd,no doubt and with that knowledge safely packed away and the assets becoming more valuable in the long term it opens up an interesting buying opportunity for new investors.
The new management IS NOT guilty of destroying our value in the merger since they were not representing us. They are guilty of greed for the options deal for themselves and in this respect I believe they are influenced by institutional shareholders.(complicated)
The bottom line in any silver producer ,is that the people stealing from us ( INSIDERS ALL )are positive about how much money this company will be worth in a few years. This is not a management that is working JUST for their salaries, as is the case in Southern Idaho by that Silver Bird. This management is unjustly ,imo,giving themselves a FREE stake in the ownership at our expense because they KNOW the value will eventually be realized by themselves.I agree they take no risk ,they win either way ,but this is essentially the bigger picture problem ,with MOST miners.
US Silver is a BUY, downside ,no doubt in my mind. The only thing that could worsen the share price IS a problematic silver sector. The pillaging has already occurred. I've called for every Director of US Silver associated with the merger to resign .This is what the retail investor should be screaming ! This sends a very clear message to Blasutti,imo.(notice I'm saying USSIF ,not USGIF)
You suggest, you do not believe the VOTE on the merger was on the up and up. I concur, which is reason #1 why we as shareholders should call for the resignations of Directors. They will lose the next vote because, they should have lost the first. We are more aware now and the retail arm in this company is still a lot larger than the insiders.
Sending strong messages to management is our only tool,other than selling. I choose to fight more on principal than money. FACT.I could sell now and still report a gain but I feel violated. My profit has been stolen from me. I was in touch with a few insiders regarding this stock pre -consolidation and was assured the value would be better. It was a mistake on my part,to not listen to my own fears which proved correct but the value should only have been lost due the silver sector,nothing else.
I still have great disappointment with management and directors ,most especially the ones left over from the last. I don't care what the credentials of Edwards are .He voted on our behalf for a merger that we have not recovered from.
I don't blame Blasutti because he was not working for our best interests at that time.
US Silver has incredibly valuable assets .WHEN, silver rises,the assets will be more interesting to everyone. Higher cost producers are always hit the hardest when spot prices fall or stagnate. Nobody cares if cash costs are 20 dollars or 10 dollars if silver is 70.Jurisdiction,safety ,reliability will take over.
You know as well as I do that market cap has little to do with net asset value .Market cap can be a direct result of market manipulation ,where as net asset value cannot. (infrastructure alone at a permitted Galena is worth 100 million )
I've previously admitted People, Projects and share structure as my criteria and we have a solid unknown on People and that is representative of this share price,along with a sterile silver sector.
I'm still reeling over those options but also realize that if this company were to be of interest of a larger one,those 2.23 options might actually help us .Follow the greed.
I think there is work to be done on the LZ area to bring it into production on a small scale.That might be what he's talking about not" 2 mill but not 50 either"
A scoping study will show in detail the revamping of the entire Galena complex which Blasutti claims (will organically grow) the production to in excess of 5 million. I'm guessing we would need to raise about 200 million. This is not bad at all considering the comparisons. Hecla is spending 300 million to get Lucky to 3 million oz and I believe Mines Mgmt. and Revett had plans to bring Montanore and Rock Creek on line for about 800 million each. Would their production be more than Galena ? ,Probably ,but that's not for sure.I'll look it up what their expected production would be. Even if it was more,Does it warrant 4X the CAPEX?
The stock price should be sailing up to 4-5 dollar area if not for the stigma of the investors still questioning the managements resolve on the merger deal. It shows new investors a lot of unhappy shareholders and this reflects in the trust investors have in the company long term.This ,imo,is why the price is so low. The assets look great but....
Thanks eik, Interesting about the LZ. That's the game changer for this stock. Scoping study to be done in Q1-2013,so not a long time to wait.
Blasutti missed comparison to rivals .I don't know if that's not allowed or just rude but the fact is IF someone compares US Silver assets to Revett ,Mines Management or even Hecla,taking all things into account like share structure,production and costs and most importantly CAPEX,I think we win.
CAPEX sounds like about 200 million to get out as much as 2500 tons a day from LZ. MGN and RVM are 4X that ,IF they get permitted,WHEN ? With the LZ expansion,Galena will blow away Lucky Friday for less costs. LF expects 2 million next year ,ramping up to 3 million thereafter. We are almost at that without COUER and LZ .but... Are they getting this message out ?
what about this conference at 2;15 ,can we see it ?
US Silver presentation doesn't seem to be available.It looks like only the ones in blue and underlined work. Any help ?
If you believe in the potential resource selling at under 4.00 would be a bad move ,imo. If USGIF is to be bought,I guarantee the mark will be double the managements options @2.23 so 4.50 sounds about right.HL said they never really were interested in Galena in it's present form (BS) but .... that was BEFORE the LZ showed up as a very realistic expansion.That's what Baker claimed was of interest to his company. HL needs to replace Greens Creek,down he line .They are obviously keeping their footprint in the Silver Valley (being that hundreds of millions have been spent on Lucky Friday)The likelihood is that new talks have begun and HL can o longer buy USGIF for CASH ,so it's back to shares and that is a very real possibility,imo,but I'm sure our management would not entertain offers below 4.00. No way. HL is overpriced,comparatively to it's peers .The share price has been carefully ushered up by insider affiliates.There just is not that much interest in HL to warrant 4.00 to 6.00 in the last few months.
That's a good point eik. why would our management want to loose their income over a paltry .25 cents. or even .75 cents a share profit. IE . Options at 2.23 ,BN's buyout at 2.50 or even 3.00 would not be worthwhile for them.For all we know offers of 3.00 have already been declined.
Other than the unnecessary political slander,I agree with what your saying about holding physical. BN has been criticized for having too much USGIF,not diversified . Holding 100% physical PM's is just as risky if you can fully comprehend all the implications that Central Banks have with Goldman,JPM ,Citi etc etc..
This isn't meant as a slant against your good decision to hold PM's ,I'm simply referring to the possibility of our Congress deciding to tax physical holdings as a more likely scenario than nationalizing miners ,here in the U.S.
Holding physical PM's is about the last thing our government ,yes ALL of them,Republicans and Democrats want. Nationalizing miners would be too difficult, but putting a 50% tax on G&S bullion holdings would not. Most of the country would agree with it. We are a very small majority that believe that PM's must become a part of currency collateral over the next 5 years. Most talk the big talk but really want to continue with the kicking the can down the road. Pensions are # 1 .That's why G&S can be successfully shorted by the Banksters.
There simply has not been the determination or the will of the general public to change our monetary system. The marginalizing of Ron Paul's candidacy is proof that so called Conservatives are no different than anyone else . Kick the can down the road a little longer with some new Romney window dressing to make us appear responsible. That was the so called ,Conservative answer.
Your right USSilverbug. Here's a thought. Do you believe there exists collusion between Commercial /investment Banks and Central Banks ? If retail sells gold/silver ,Central Banks are quietly buying.Every trend we (retail )make ,is countered by institutions. I'm not sold on the idea of buying strictly physical because we don't know the consequences (tax liability),down the road ,whereas miners are equities,nothing more.
In the U.S. whether your Republican or Democrat,it still is 28% tax on PM's in almost all investments unless they are miners. IE;GLD,SLV or physical. This might get a lot worse and it's not just the U.S. but MOST countries worldwide,imo
Talks concerning the U.S. fiscal cliff are stagnant and the clocks ticking. I expect the markets including PM's to go down. Hope that's wrong,it ruins another solid report on US Silver's expanding resource.
LZ Grade overall low grade with 30-40% higher grade.Whatever the case the LZ blows away Montanore or Rock Creek ,so the price valuation to surpass Revett is dependent on more confirmation. Despite what all the negative posts here say,this is the time to BUY,if speculation is in your blood.
I've been vocal about the exclusion of value that common shareholders have been subjected to,but this is really a new story. US Silver resources are becoming serious contenders for the #1 slot in silver production,nationwide. Greens Creek will likely be short lived and even if Montanore and Rock Creek come online ,it's not likely they will equal production of Galena (5 years out) and remember the CAPEX over at Revett and Mines Mgmt. ,is going to be enormous . We do not have permitting obstacles .Think about it ,before you write this company off.
Why is it ,that gold and silver bullion represent a store of value but not those that produce the bullion ?
Investors do not trust management,not just here but throughout the industry. An identical greed that fills the pockets of Wall St. institutions, that have been playing a risky game since the complete end of Glass Steagall via the taxpayer backed Federal Reserve,is present in most ,if not all mining companies.
They measure their importance in particular the same as gold and silver bullion (which could be correct),but fall short because of constant obvious theft of shareholder value. I've skimmed through a hundred gold and silver companies and I see most involved in some sort of reward scenario for failure . If not recently ,all you have to do is look back a bit. It's more obvious at USGIF ,because in their minds their NEW,but they fail to recognize that I am not.
The TSX-V ,the TSX ,certainly OTC QB and QX and even the AMEX listed stocks are all riddled with this same sort of reward for failure and self preservation behavior. The mining executives sold out to the fund managers and the common shareholders are the door mat.
If someone can actually find a shareholder responsible management in the gold and silver arena ,I'd surely like to know who they are. Probably too high priced,which likely means another bad endeavor for the individual investor. This is why people say,buy bullion or coins and that sounds like a reasonable response until the day when the same people that corrupted the mining stocks ,start a new game.
I don't think the answer is to run and hide in physical with everything you have . It would make more sense to get a grass roots individual investor movement going, to attack the insider relationships at all levels.Go after the entire industry .
It doesn't matter if it is an exploration play or bio-medical play, allowing a massive loss on an individual stock (realized or unrealized) is not good speculating. Why tie up 20% of your account on the hopes that someday your stock will come back and make you whole?
I can see how some investors could not follow my logic. I'll use an example format;
I buy a uranium exploration stock mid 2011 for 7 cents a share. I research and find the company people sound and there business plan is excellent. It's still a long shot exploration company but the geological look good so...
I want to own the stock for 1 year or more because I want to take advantage of long term capital gains.I don't want huge lots of cash going to the IRS for my work which is exactly what happens with short term gains.The more money you make ,the worse your situation.
The stock falters and most (like you I'm sure ) no offense ,would sell . It goes as low as 1.5 cents.I hang on because ultimately I never bought to trade but to speculate on the hope of a uranium discovery. I have at this point owned it under a year so if I were to sell ,my year of waiting for long term capital gains begins again.
Almost 16 months or so from the beginning ,my long term gains secured ,all I need is the discovery. It comes and the stock spirals upwards as I knew it would to 16 cents.I sell because when a discovery happens of that magnitude speculators (short termers come in droves) I wave goodbye.
The secret is ,it had nothing to do with charts or technical's ,in these cases it never does.I was betting that a good group of people would finally find a decent discovery. If I make a decision to bet on the discovery ,so long as the company has no solvency problems ,what difference does the price make until the day of discovery. Minimal capital gains is what it's all about and my money is in my hands ,not boxed into a pension account. Pay as you go . If our governments at all levels operated this way ,we would have no deficits and no debt.
You can use a 3000 loss on capital gains against what you owe with your business taxes (I would think). I'm guessing your in the U.S. ...... Anyway,my point was that selling is not always advantageous when losses are evident . What you need is a big surge in silver and it will happen. What you also need to do is stop averaging down and diversify into an alternative commodity like energy. Silver is a great thing to invest in because even though the sky looks like it's falling now, the cycle will come back and it will shine. Same thing happens with Oil and Natural gas. NG was pushed so far down that many equities won't survive but those that have the stellar projects (even if they have cash flow problems),will imo be big winners ,2013. I can't figure out if silver will go high in the first or second part of the year. You can look at those charts all day and in the end the only thing that is going to change our fortunes here is the price of silver.In the meantime we as investors have to make sure this company is at it's best when the spot price rises. That way when others are flying,we will be going into orbit.Until then ,it's pretty boring.