Yes Matt I remember as well :) Chen and nearly 10 out of 10 commodity or precious metals investors have egg on their face. Its one thing to deal with the normal market forces, but metals investors never knew just how much the Fed/Banksters/Elitests were going to manipulate the markets. You can only stretch the disconnect so far and the market has to have its way?
My theory going forward is, if we believe metals are going up, then we have to find the strongest companys with the best mgt or the ones with the largest potential catalysts relative to their market caps, and act on that. I believe either we've seen the bottom or its coming very soon and then we get the up cycle.
Not a matter of if, but when. Much lower than $1000 gold and we'll get a sector destruction.
Chen had good reason to like the company before (Huge assets, huge catalysts, solid mgt, great share structure) but the risk factor cashed in. Both Jurisdiction & price of metals cashed in heavy like my post said. Fortunately mgt was able to keep things together as AUMN had not gotten to CF king status yet during the good times. I like the mgt and have stayed in touch along the way and at PDAC. I now like the story going forward if metals stay even or go up. They have lots of tools now and El Quevar is not on any radars and therefor free in the valuation and thats a big freeby.
Jurisdiction got me a couple times and big on Mart which is why I like to stay on this continent.
For now, we need leverage, either from buying solid companys way cheap or from buying the companys with the best future value calculated off what we believe to be the future value of the product and how much of it.
Goro for instance. If the FV is $33/share at $1800 gold A person could have bought it at 1.15 this month and 30x their money at $33. If you wait for $3.30 GORO you only 10x. Little off topic but felt like rambling.
Anyone else have a different outlook in general?
Have a great weekend everyone!
AI
