RE: buyandholdI too have been at this game for a quite a time and my biggest gain to date was a cool 250K $ on Centurion energy which I accumulated for 5 years in the .40 - .70 range and sold out at 9.00 (it went all the way to 18$ and eventually was taken out at 12.00). Like CBR, every time the stock was in the tank, I reviewed the business plan and the strategy and bought some more.
I will continue to do this with CBR, until milestones are not met or management starts looking through rose coloured glasses. Last year at this time CBR was trading at .55, but had declining cash, the JV was speculative only, and we hadn't had the drilling success since then. There is no doubt that it is stronger company today, yet the price is almost half of what it was back then. I agree that this should be trading in the 2.00 - 3.00 range, without the elephant in Nunavut, but I am betting that they will find the mother lode.. these guys are good at what they're doing and truly believe that there's gold in the hills.
Junior Gold investing is a speculative business, but this truly has to be the bottom for this out of favour sector. CBR is one of the few explorers with real cash in the bank, no share dilution in sight and huge prospects on the near horizon. As a speculation it is a good one, and cheap at these prices.
The Bear case: the financial markets go to hell in a handbasket, no money is available through merchant banking and private placements to fund the juniors and they all go bankrupt. except those with enough cash to outlast the bear. Day traders are trading pop bottles out of shopping carts, CBR fails to find any economic deposits, Argentina nationalizes all gold miners and the accountants illegally speculate on gold futures, losing all the cash.
You judge the risk/reward profile.