JNR Resources Inc JNRRF

RE: Comparing UEX deposits

[st0ckpicker]

I don't disagree with your logic (using comparitive metrics to determine value within a group) but I think your choice of metrics may be skewing your results. I like all of the stocks you mentioned but hold a slightly larger position in UEX (as well as some DEN, STM, AFKDY, and SXR) at the moment. I do intend to increase my holdings in JNR to be equal to UEX. I do this because I think JNR is the best leverage play. My reasoning has nothing to do with earnings as these are exploration companies not producers. Earnings are a challenge for an explorer and I usually judge them on the quality of their property, cash in the kitty, how much of their property potential is built into the price, and the breadth of their properties. On all but the last metric JNR scores high in my book. The quality has not been proven yet but the drills released are supportive of a nice resource. The last metric is the one that challenges JNR in my book. If Moore Lake does not pan out there is no value here. I don't think that will happen but it is part of the risk profile regardless. While UEX scores infinitely higher on the breadth meter I think they fall short on the first as there has been no evidence of a home run in their portfolio. They have a lot of room to find one but it isn't showing yet. In short, earnings are not the reason I think folks are here. They want to own these stocks before the resources are proven much less processed. Once they are in process the P/E will be a good measure of value. Right now you are in speculator land and I believe that speculation centers entirely around the size of the resources in question and the general trend of the commodity. Bring on the drills, I think all of these stocks have blue sky potential.