Replies to post #30180 on Value Microcaps Junior Miners

[silver100]

High amounts of debt, market cap, and shares out are red flags for me, as are potentially problematic mining districts. I look for reasons to discard companies as potential investments. Quick back of the envelope analysis of the 10 companies mentioned in that article:

Kirkland Lake – debt 148M
Osisko – debt 337M
Lake Shore – debt 130M
B2Gold – no debt, but 646M shares out, 1.4B market cap fully valued?
Perseus Mining – no debt, 458M shares out, 591M market cap, but West Africa
Timmins – debt just 20M, 144M shares out, 327M market cap, Mexico, 100,000 Oz production in 2012, increasing to 130,000 Oz in 2013
Crocodile Gold – debt 75M
Rio Alto – debt only 3M, 176M shares out, 598M market cap, Peru, low cash cost due to copper, La Arena contains 3.9 million ounces gold and 2.0 billion pounds copper
Brigus – debt 99M
Alamos – no debt, but 1.4B market cap fully valued?

Looking further into Timmins and Rio Alto, discarding the 8 others - who to add to the list to look into? Anyone have any red flags for Timmins and Rio Alto?

[dr_airtime]

Here's who I bought today....

...don't want to touch more speculative juniors at this point.

I think we need to get some sort of elastic rebound so I bought the following gold producers with tight stops this afternoon as we should get some sort of big rally if gold rebounds definitely through $1400 tomorrow or early next week.

Thesis: Sector leaders if rebound happens & great entry for LT hold if gold bull continues:

RGLD, TMM/TGD, YRI.TO/AUY, BTO.TO

Thesis: Emerging producer just too sold off:

ORV.TO,

I sold a bit of my fave Mandalay (MND.TO) for these above as it was up $12% on the day and has treated my well the last couple months so I am willing to temporarily rotate into the above.

I wanted to add Argonaut (AR.TO), but I will wait for tomorrow as up 8% on the day. Eldorado (ELD.TO/EGO) is another that will rally fast on a rebound but they are feeling the pain so I'll wait for a signal.