Replies to post #11074 on Value Microcaps Junior Miners

[nsomniyak]

thanks for the analysis!

[GoldenKnight]

As a shareholder of both SMC/LGCFF (LRR.TO), I have to agree /w you cl001. I wouldn't cut this one short unless you feel strongly about parking the $ in another junior gold company .. if you find better risk/reward, please share!! :)

LRR.TO was a $10+ stock now trading at .75. Did they have bad news along the way .. nope nadda. Just market forces, financial mess, etc.

As a bonus, Linear has yet to move....... :) :)

Patience will be well rewarded.


Regarding WGW, love their fuel hedge, brilliant. I'm doing the same on a micro scale .. wish I had a large stainless steel tank. Everyone able to should be stocking up at these free prices. A gallon of gas is 50% cheaper than a gallon of milk, LOL....and I live in cow country of NY and can tell you the milk business *stinks* in more ways than one.

-GoldenKnight

[nutsaboutgolf2001]

As a further point SMC's share price is much further off it's high (percentage wise) than LRR. I think the main underlying reasons are that LRR has partnered with great companies (namely Kinross with very deep pockets) and that it has lots of cash (and thus no immediate financing or refinancing needs). However with the merged company SMC liquidity problems virtually disappear and LRR's current gold production will provide significant operating cash inflows. I think this is a case where the combined company is definitely worth much more than the sum of the parts and I think we will be quite surprised by the price action of both companies prior to the merger and of the new LRR thereafter. Moreover, correct me if I'm wrong but are not LRR's partners on the hook to pay for all drilling and exploration costs?